About The Claim
The client, who owns and operates an aparthotel, undertook a substantial refurbishment project to modernise the property and improve guest experience. The scope of the works included upgrades across guest suites, communal areas, and key operational facilities. The claim focused on identifying qualifying expenditure for capital allowances, covering items such as embedded plant and machinery, loose fixtures, and other improvements to the fabric of the building.
Our Approach
We began with an in-depth review of the documentation and cost breakdowns provided by the client. This initial phase included due diligence to confirm the eligibility of costs and to determine the likely value and structure of the claim. We then issued a proposal setting out the expected allowances and tax benefits available. Following client agreement, a detailed on-site survey was arranged and carried out by one of our experienced surveyors. An inventory of qualifying items was compiled based on observations and supported by construction records and specifications. The valuation of these items took into account actual cost data wherever possible, and we used BCIS cost benchmarks where required to fill any gaps.
Once the valuations were complete, our technical team analysed the expenditure, assigning items to the appropriate capital allowance pools. This included identifying embedded plant and machinery, loose fixtures, and any items eligible for relief under Structures and Buildings Allowance (SBA). Non-qualifying elements were excluded as part of our compliance process.
In addition to the claim itself, we also provided the client with an updated fixed asset register. This helped to clearly distinguish between capitalised leasehold improvements and movable assets, ensuring improved transparency and future tax planning. Once we received confirmation that the claim had been incorporated into the relevant tax returns, we issued final letters and a detailed report to finish the process.
Examples of some of the embedded qualifying items that we found...
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Passenger lift
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Water tank booster and moderator system
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Wall mounted bathroom cabinet
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Built in reception desk
An observation from our Senior Claims Analyst, Dave Corfield...
“Although the project was typical of a high-end hospitality refurbishment, the level of detail involved in the fit-out meant we had to be meticulous in our cost analysis. Aparthotels often feature a blend of residential and commercial features, so it was important to identify the right assets and apply the most suitable allowances. The collaboration with the client ensured that everything was captured accurately and processed on time.”
“All good with the service, everything was handled efficiently. I received clear, concise advice on what is typically a complex area, which made the process much easier to navigate. I’d happily recommend Capital Allowance Review Service to others.”
“Capital Allowance Review Service delivered exactly what you’d hope for: efficient communication, expert knowledge, and a hassle-free process. They took the pressure off by handling the technical side.”
Lewis Rutherford | Tax Manager
DJH
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