About The Claim
After owning Reservoir View Holiday Cottages for many years, the FHLs were now being transferred from the parents to their daughter and her husband. The claim was made on behalf of the expenditure by the parents, and the allowances were being passed over to the daughter and her husband via an S198 Election. It was essential to comply with “connected-party” legislation to ensure the calculation of the unclaimed capital allowances was accurate.
Our Approach
Our approach to handling the capital allowance claim involved required due diligence and strategic steps.
We collaborated closely with the client gathering relevant information and their valuable guidance on improvements versus original items due to the timeline of years the cost covered.
We carefully and meticulously processed the survey and valuation to differentiate purchase, improvements & and repairs to the FHLs.
This enables us to then apply the items and associated costs to general and special rate pool items, ensuring compliance with tax regulations by excluding ineligible assets.
A Smooth Process
We prepared comprehensive reports including the crucial S198 Election. In addition, we facilitate smooth processing by the clients’ accountant during tax return filings. Effective communication and coordination were pivotal throughout the process, strengthening our relationship with the client and ensuring a successful claim. The tax savings brought significant financial benefits, demonstrating how our meticulous approach and collaborative teamwork delivered favourable outcomes for our valued clients.
Examples of some of the embedded qualifying items that we found...
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Built-in kitchen units
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Feature lighting
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Ultra violet water disinfection units
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LPG gas and kerosene storage tanks
An observation from our Claims Analyst, Christine Hunter...
“One notable aspect of this case was the need for close collaboration between our team, the client, and the accountant. Ensuring a smooth and effective application of the claim to the tax returns required seamless coordination and open communication among all parties. This collaborative approach played an important role in achieving a successful outcome for the capital allowance claim.”
“The processing of our capital allowance claim went well and we were pleased with the results. I was originally introduced to the CARS team through an accountant and from my first telephone consultation with Chris, everything went very smoothly. The team was on top of everything, even sending reminders of deadlines so that nothing got overlooked. I’m pleased that we decided to use them for support and I would recommend others to do the same. To gain back tax that is rightfully yours is only a good thing.”
Sally Binns | Director
“The CARS team took good care of my client whilst adding value to our routines. They are very thorough and they certainly have the knowledge to make the most of the tax relief available. I would be happy to lean on their support for any other opportunities to make a capital allowance claim.”
Stephen Kay | Partner
The Barker Partnership
Other Case Studies
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Luxury Furnished Holiday Let (FHL)
Industry: Holiday Parks & Furnished Holiday Lets
- £916,421
- £548,799
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