About our client
After establishing a new partnership with a firm of accountants to support them with their capital allowances claims, we highlighted a client of theirs that we felt could benefit from a full Property Embedded Fixtures and Fittings (PEFFs) review.
This client owned three commercial properties within a limited company. The properties had been sitting on the balance sheet for many years, after being acquired in 2001, 2003 & 2007, and were subsequently rented out to a third party as serviced offices.
The rent received by the company from these properties meant this client was liable to corporation tax.
Why they came to us
The client had a general understanding of the capital allowance concept, having been approached by consultants in the past, and understood the value and their importance in relation to the tax planning of the business.
They were also reassured by the trusted partnership we had with their accountants. It’s important to showcase how a process can maximise the level of capital allowances and approach claims in a manner that satisfies all the technical points in order to satisfy HMRC requirements.
Legislation has changed many times; this case was a good example of having experience and understanding what legislation needed applying to property expenditure / transactions nearly 20 years ago.
About the claim
As a result of our process, which removed the tenant’s expenditure, we secured capital allowances for the Landlord totalling approximately £500,000.
Whilst working alongside the accountant we submitted amended tax returns and generated a refund of tax (cash) totalling £26,929. This left a further tax benefit of £72,539 that would be crystalised over the coming years and play a key part in the client’s tax planning.
In summary, this meant that £99,468 of tax would be saved as a result of the highlighted PEFFs against expenditure in 2001, 2003 & 2007.
Our Managing Director, Chris Roberts, shares his observation...
“This case was a great example of a client having a good understanding of the concept and realising the importance of quality advice. He soon realised that it wasn’t just a surveying exercise or an accounting responsibility. After having a number of interesting ‘sales pitches’ from others, it was good to be able to provide the reassurance he was looking for and show him how our multi-disciplined approach would be aligned with his accountant. Combining quality with trusted partnerships is in our view the best approach.”
What do accountants think of our support?
“I have worked with CARS on 2 separate claims for my clients and comparing them to other firms I have used I am overall really pleased with the service provided. The process was smooth and everything was completed on time. I met with one of the surveyors and he was very good. I couldn’t fault anything. They even provided extra support with some questions I had regarding things that weren’t related to the claims we were working on. They went that extra mile to help me wherever they could. I will definitely be leaning on them for support moving forward.”
Faisal Aslam | Director