Capital Allowance Case Studies

FURNISHED HOLIDAY LET

Expenditure: £305,000
Total qualifying expenditure identified: £52,781
Generating a tax saving of: £21,112

The client purchased a cottage in the heart of one of the UK’s National Parks for £305,000 which qualifies as a Furnished Holiday Let.

We were instructed by the client’s accountant to identify and value qualifying items in the property for a capital allowances claim.

We completed a thorough room by room survey of the property using our bespoke app to gain the maximum amount of detail for the claim.

As a result, the total qualifying expenditure identified by our valuation was £52,781, generating an actual tax saving of £21,112 for the client.

VETERINARY PRACTICE

Expenditure: £144,432
Total qualifying expenditure identified: £92,131
Generating a tax saving of: £17,505

The client leases an independent veterinary practice situated in Norfolk.

The client carried out improvement works totalling £144,432.

The practice has numerous consulting rooms, surgery rooms, an x-ray room, prescription room, two receptions and offices.

We were instructed to make a Capital Allowances claim and identify any qualifying fixtures ensuring that the maximum tax benefit was generated on behalf of the client’s company.

Our work identified and allocated Integral Features and other qualifying plant totalling £92,131.

OFFICE & WAREHOUSE

Expenditure: £1,732,500
Total qualifying expenditure identified: £609,000
Generating a tax saving of: £115,710

The client specialised in innovative electrical testing equipment and were expanding their business to the UK market.

In 3Q2017 they incurred expenditure of £1,732,500 constructing a new head office building in Staffordshire for their UK operations.

We were instructed by the client’s accountant to complete a full survey of the building and analysis of the expenditure.

Our valuation identified over £609,000 in qualifying expenditure for capital allowances. As a result, the tax saving for the client was in the region of £115,710.

OFFICE BUILDINGS​

Expenditure: £3,800,000
Total qualifying expenditure identified: £800,000
Generating a tax saving of: £152,000

The client constructed three modern office buildings in Peterborough. Expenditure on the project as a whole was in the region of £3,800,000.

The offices were built to shell and core and the total expenditure included external works, infrastructure works and Section 106 highway works.

We were instructed to carry out surveys of the new buildings and carry out an analysis of the expenditure.

As a result of our valuation, qualifying expenditure for capital allowances of nearly £800,000 was identified for the client to use to reduce their tax liability going forward.

HOTEL

Expenditure: £4,588,806
Total qualifying expenditure identified: £3,308,313
Generating a tax saving of: £661,663

A Hotelier’s accountant recommended Elect to carry out an analysis of their two hotel properties in London.

Property one was a 118 bedroom hotel with 3 conference rooms and 2 on site restaurants which had been recently refurbished.

Property two was an 8 storey hotel with 142 en-suite bedrooms with a minor refurbishment.

We completed a thorough room by room survey of the properties, and subsequent valuation to establish the maximum available qualifying expenditure.

As a result, we identified £3,308,313 in unclaimed capital allowances for this client.

DOCTOR’S SURGERY


Expenditure: £300,000
Total qualifying expenditure identified: £167,000
Generating a tax saving of: £66,800

The client purchased a large residential property situated in Coventry.

In 4Q2019 they incurred expenditure in the region of £300,000 extending and converting the property into a functional doctor’s surgery.

We were instructed by the client’s accountant to carry out a forensic survey of the conversion works and analyse the project expenditure.

As a result of the analysis, we identified just over £167,000 (55%) of expenditure qualifying for capital allowance.

The client was able to utilise this in their Annual Investment Allowance, generating a tax saving of £66,800.

OFFICE​


Expenditure: £5,239,500
Total qualifying expenditure identified: £1,513,491
Generating a tax saving of: £287,563

The client purchased a large office building from a charity in Peterborough for £5,000,000.

We were instructed by the clients accountant to identify and value qualifying items in the property for a capital allowances claim.

We completed a thorough room by room survey of the offices and ancillary warehouses to gain the maximum amount of detail for claim.

As a result, the total qualifying expenditure identified by our valuation was £1,513,491.

The client was able to utilise approximately £350,000 of these allowances in the first year, amounting to a tax saving of around £66,500.

HOLIDAY PARK

Expenditure: £7,200,000
Total qualifying expenditure identified: £1,447,395
Generating a tax saving of: £275,005

The client purchased a holiday park on the Welsh coast for £7,200,000 and instructed us to complete a capital allowances survey and valuation of their expenditure.

Our surveyors attended the leisure park and completed a thorough survey of all the items qualifying for capital allowances, including underground cabling to the park homes, toilet and shower blocks and office buildings.

As a result, we identified a total of £1,447,395 of apportioned capital allowances (over 20% of the purchase price) available to the client, of which £1,040,187 could be relieved in year one through use of the annual investment allowance.