About the claim
The client had recently built new units on their industrial estate (2020 & 2021) however the available detail limited the level of Capital Allowances that good accounting routines would have calculated, i.e. stage payments. The client had already built industrial units going back many years and therefore another challenge was assessing whether future tax savings could be achieved by reviewing property costs from years 1992 to 2009.
An observation from our MD, Chris Roberts...
“A key challenge here would be to stress the importance of experience. Given how many times legislation has changed over the last 30 years, this case required a clear understanding of which legislation applied to which expenditure in specific years.”
Firstly it was important that we gathered all the available information relating to the newly built units, e.g. stage payments, drawings, plans, and any other information to help our understanding of the building project. Similarly, with the existing industrial estate, it was important to gather any and all information relating to the property costs and treatment from 1992 to 2009.
Essentially, it was crucial for us and our client’s accountant, Morris & Co, to work together to fully understand their costs to enable us to determine a robust approach to claim tax relief against the costs to build an industrial estate spanning nearly 30 years.
Once it was confirmed Capital Allowances were available and the client’s tax position would benefit in the short and longer term, we visited the industrial estate and carried out a detail inspection of all the units under review.
A detail inventory was generated listing all the embedded items of fixtures, fittings & features. This was not limited to the internals of the units but covered the entire site including external features on the estate.
It was important not to include items that had already been treated for tax via Repairs & Renewals, Fixtures & Fittings, and Plant & Machinery.
Following the technical filtering process, the claim value had been calculated ready to be submitted to HMRC on the client’s behalf.
Examples of some of the embedded qualifying items that we found...
LED Light Strips
“The process was very technical, however, the team clearly knew what they were doing and it was clear they had a good knowledge on capital allowances. Everything worked well and I was impressed by the results they achieved. The fact that they work closely with our accountants and support us after the claim is submitted if required puts my mind at rest.”
David Flood | Director
“Our experience with CARS was very positive. The process was very streamlined, required minimal input and yielded a significant allowance. Chris Roberts and the wider team were great to deal with. Thanks for your help with this process.”
William Flood | Consultant
What the accountant thought...
“We enjoyed working alongside CARS. They kept us updated throughout the entire process and built a strong relationship with our client, which meant we could take a step back while they took control of everything. You can clearly see the knowledge the team has and when you see the thorough process they apply to their claims, it only emphasises the level of expertise this area of tax relief requires. We will be leaning on them to complete future claims for our clients and any support we require with capital allowances.”