About The Claim
Propsco Ltd, a company specialising in renting out investment properties, recently sought to claim various tax breaks for three modern detached industrial units they had purchased from a developer. These units, primarily shells awaiting tenant fit-out, included essential installations such as reception areas, offices, WC’s, and electrical systems, making them eligible for capital allowances. The tax breaks claimed encompassed 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
Upon receiving the claim, our team began with an initial review of the provided information, preparing a proposal that outlined the potential tax savings for Propsco Ltd. With the client’s agreement, we conducted a physical survey of the properties to create a comprehensive inventory of qualifying items. This step was particularly crucial as two of the properties were tenanted at the time of surveying, necessitating the exclusion of any tenant-incurred expenditures. The vacant unit served as a benchmark for how the tenanted units appeared at purchase.
Our surveyors then prepared a detailed valuation of the surveyed items, which was analysed by our technical team to determine claimable items and appropriately allocate them to the correct capital allowances pools. Additionally, our team provided a valuation of the land to facilitate the necessary apportionment for claiming structures and buildings allowance.
Once these processes were completed, a copy of the surveyors’ inventory was sent to Propsco Ltd for review and approval.
Finally, a comprehensive Claim Summary was prepared. This document detailed the claim, projected tax saving benefits, and necessary entries for tax returns, which were subsequently forwarded to Propsco Ltd’s accountants for processing.
Examples of some of the embedded qualifying items that we found...
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Extraction systems to WC’s and kitchens
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Mezzanines for storage
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Motorised roller shutter doors
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Fire alarm systems
An observation from our Senior Claims Analyst, Dave Corfield...
“The claim illustrated that even in a situation where newly built vacant properties were purchased from a developer where capital allowances could easily be overlooked, a reasonable sized claim can still be achieved.”
“The team carried out a thorough review of our property portfolio and identified substantial allowances that could have gone overlooked. Their expertise is vast, and their friendly approach made the entire process stress-free.”
Anna Reade | Director
“The CARS team are our go-to experts for capital allowance claims. Their ability to handle complex scenarios with precision and care has been invaluable. We trust them implicitly to deliver the best outcomes for our clients.”
Dawn Thomas | Account Manager
DJH
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