Construction & Property: Case Study 2

Background

Having been recently appointed advisors to a company that rents out industrial and office buildings, we identified significant tax relief in the form of Capital Allowance was available on expenditure the company had incurred constructing new industrial and office units over a number of years. Our Specialist Capital Allowance Team was engaged to identify and maximise the expenditure qualifying for relief.

Our Approach

  • Fact finding meeting held on sites to consider contents of buildings and establish items of expenditure likely to qualify for Capital Allowances
  • Detailed review of expenditure to establish qualifying items of capital expenditure and rate of Capital Allowances available
  • Summary report of qualifying expenditure prepared to support claim for tax relief on qualifying expenditure

The Benefits to the Client

  • Substantial expenditure qualifying for Capital Allowances identified
  • Corporation Tax liabilities of the previous two years reduced providing a tax repayment in excess of £200,000
  • Of the £2m spend on one industrial unit the following expenditure qualifying for Capital Allowances was identified:
    • 48% - Main Pool at annual rate of 18%
    • 7% - Special Rate Pool at annual rate of 8%
    • 3% - Qualified for 100% rate of Capital Allowances
  • Of the £2.2m spend on an office building the following expenditure qualifying for Capital Allowances was identified:
    • 5% - Main Pool at annual rate of 18%
    • 18% - Special Rate Pool at annual rate of 8%
    • 11% - Qualified for 100% rate of Capital Allowances

The Plus Factor in Action

  • We helped our client make money by giving them an instant cash flow boost through a repayment of CT of £200,000
  • We saved our client time by AAB’s specialist team project managing the whole claim from start to finish
  • We gave our client peace of mind by ensuring they were happy that they had maximised the value available to them through what was significant capex on their building
  • We supported them now and in the future through ensuring future CT savings are generated via the capital allowances claims identified
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Key Contact

Gill Pryde
Partner

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+44 1224 625111

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