About The Claim
Hales Sawmills Holdings Ltd, a well-known company in the DIY, garden, and timber industry, as well as being a major supplier of wooden acoustic fence panels. They recently built a new warehouse that includes a trade counter, shop and first-floor offices. Given the high percentage of the building dedicated to warehousing, substantial claims were made for lighting, electrics, and air conditioning, all of which are significant expenses. The tax breaks claimed included General and Special Rate Pool capital allowances (claimable as Annual Investment Allowance), First Year Allowances (including super-deduction), and Structures and Buildings Allowance.
Our Approach
A challenge with this claim was the identification and valuation of items not readily visible, such as solar panels installed on the roof and attenuation tanks located below ground. Additionally, since the build costs spanned over two accounting periods, it was crucial to apportion the claim accurately across the two affected tax returns.
We began with a thorough review of the information requested and provided by the client, followed by crafting a proposal to outline the potential tax savings benefits. Upon agreement, a physical survey of the property was conducted to prepare an inventory of items, which were then valued by our surveyors.
Our technical team analysed this valuation to distinguish claimable from non-claimable items and identify various allowances. Detailed expenditure information obtained from the client was cross-checked against the surveyors’ findings to ensure accuracy. The surveyors’ inventory was then sent to the client for review and approval. Finally, a comprehensive Claim Summary was prepared, detailing the claim and projected tax savings, along with schedules for necessary entries in the tax returns, which were forwarded to the client’s accountants for processing in the amended 2023 return and the upcoming 2024 tax return.
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Air conditioning
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Attenuation tanks
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Movement sensors to light fittings
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Solar panels
An observation from our Claims Analyst, Christine Hunter...
“As a current newly built property, we were able to carry out the claim without having to consider tenants’ expenditure or allowances already claimed. This removed any uncertainty in identifying claimable items.”
“The CARS team provided exceptional guidance throughout our capital allowance claim process. They left no stone unturned, ensuring we received the maximum benefit. Their expertise has saved us a significant amount in taxes, and we couldn’t be happier with the results!”
Julian Parton | Director
“We always recommend CARS to clients with commercial properties. Their technical knowledge and ability to identify every available allowance is fantastic. It’s reassuring to work with a team that is reliable and meticulous.”
Gary Chadwick | Audit Director
DJH
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