About The Claim
A Care Home business underwent a significant improvement program in 2021 and 2022, involving the construction of additional bedrooms, a staff messroom facility, a dining room extension, and a Covid-compliant pod. The claim submitted in 2023 sought tax breaks for the Annual Investment Allowance, Super-deduction, and Structures and Buildings Allowance, amounting to a total expenditure of £720,414. The challenge was to ensure accurate tax return entries and liaise with the client to guarantee the claim’s proper treatment.
Our Approach
In tackling the capital allowances claim for their extensive improvement program, our strategy was multifaceted and meticulous. Beginning with a due diligence process, we verified the claims’ legitimacy, gathered crucial expenditure details, and ensured no prior allowances had been claimed. This was followed by an arranged site visit where our surveyor, guided by on-site personnel, scrutinised and identified eligible items.
Post-survey, a comprehensive valuation, and analysis were conducted, distinguishing between general and special rate pools, excluding non-qualifying items, and pinpointing those eligible for the super-deduction and first year allowance. The final step involved formulating detailed reports for the client, offering precise tax return entries and guidance for claim inclusion.
Examples of some of the embedded qualifying items that we found...
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Underfloor heating system
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External floodlighting
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Kitchen fittings
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Grab rails
The Result
The meticulous approach resulted in the identification of £332,062 in capital allowances, leading to total tax savings of £143,764. The overall claim percentage reached an impressive 46%. The outcome surpassed initial expectations due to the number of qualifying items, leaving the client satisfied.
An observation from our Managing Director, Chris Roberts...
“This case highlighted the need for precision in tax return entries. Despite the survey being relatively straightforward, the company’s ability to group relieve losses to a related party added a layer of complexity. The successful navigation of these intricacies showcased the team’s expertise and dedication, ensuring the client’s optimal tax savings. This case showcases our commitment to delivering not only accurate and strategic capital allowance claims but doing so with efficiency and exceeding client expectations.”
“I came to the CARS team with very little time to get a claim completed before the deadline. After speaking to another provider who said they couldn’t put the claim together in time, I got in touch with CARS who were up for the challenge and completed it all within 16 days! It’s safe to say it was a very quick turnaround and the team did a great job. I was pleased with the overall service and result.”
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