About The Claim
Our client, a property rental company, filed a claim related to the full refurbishment of an existing two-storey office building and the construction of a new adjoining property. The claim included various capital allowances such as Super-deduction and Structures and Buildings Allowance. The key challenge was to accurately apportion the claim between the refurbishment of the existing property and the construction of the new building since the work was carried out simultaneously on both properties.
Our Approach
We needed to ensure a high level of accuracy was adhered to comply with HMRC guidelines. We began with an initial review of the information provided by the client, followed by preparing a proposal outlining the potential tax savings. After securing a signed agreement, the client supplied detailed videos that enabled our surveyor to prepare a comprehensive inventory of items. An important stage in our process is a site survey to help identify those qualifying items that would usually go overlooked, however, in certain circumstance completing a survey through videos may be advised to fit the clients needs. Once the survey was completed, the surveyors then valued these items, and our technical department analysed what was claimable, categorising items into the correct capital allowances pools.
The inventory was reviewed and approved by the client before we prepared a Claim Summary, detailing the claim, projected tax savings, and necessary tax return entries, which were then passed to the client’s accountants. Once all parties confirmed the claim was accurately processed in the tax returns, we issued our final letters and reports. It’s important to be completely transparent with our clients and their advisors throughout the whole process. Providing regular updates and detailed reports enables us to do this.
Examples of some of the embedded qualifying items that we found...
Smoke detectors
Fire alarm system
Wall mounted air conditioning system
Replacement windows
An observation from our Senior Claims Analyst, Dave Corfield...
“This was a slightly unusual situation as a full property refurbishment was taking place at the same time that a new adjoining property was being built. The complexity required attention to detail to ensure that the claim was accurately apportioned between the two projects. Despite the challenges, our approach and thorough documentation ensured a successful outcome. Both the client and our team were pleased with the result, achieving the desired tax savings while maintaining compliance with all relevant regulations.”
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