The Challenge of a Vast Portfolio
This client owned 98 properties
The primary challenge we faced was the sheer magnitude of this claim. With 98 properties to evaluate, our due diligence was paramount. Our objective was to meticulously identify which property costs qualified for capital allowances while ensuring a seamless and efficient process. To accomplish this, we embarked on a comprehensive data collection endeavour. Collating all the necessary accounting, legal, and property information. This included Full accounts, Fixed asset registers, Repairs & renewals and Tax Returns. Plus any Purchase contracts and other key documents were gathered to facilitate a comprehensive assessment.
Streamlining the Property Survey Process
Our organised approach to a large portfolio
We always aim to streamline the property survey process. Therefore, we prepared detailed survey instructions tailored to the specific requirements of each property. These instructions served as comprehensive guidance for our surveyors, ensuring accurate data collection. Efficiency was a top priority. So, we meticulously arranged and scheduled surveys to minimise disruptions to our client’s business operations.
Accurate Valuation and Item Identification
Highlighting eligible items
With our expert team on the job, we accurately calculated the value of items within each property using approved valuation methods, ensuring compliance with HMRC requirements. The resulting schedule of items clearly highlighted those eligible for capital allowances, while non-qualifying or previously claimed items were diligently removed. Our meticulous approach guaranteed the accuracy and integrity of the claims made. To provide a comprehensive report, we included detailed workings and information on an S198 election, which would prove valuable if the client decides to sell any properties in the future.
A Comprehensive Report and Future Considerations
Reducing our client’s tax liabilities
The culmination of our efforts proved to be successful. Through the optimisation of their capital allowances, we successfully reduced our client’s tax liabilities, resulting in impressive overall tax savings of £1,127,000. This significant financial benefit not only reflected our expertise but also emphasised the positive impact our process had on our client’s financial well-being.
Our expertise was put to the test
Our team delivered exceptional results
The challenges presented by our client’s case also brought forth opportunities. As we have seen in this article, by completing a thorough review of relevant information, meticulous assessment of capital allowances eligible, and developing a streamlined process for property surveys, we were able to deliver exceptional results. The unclaimed capital allowances identified amounted to a staggering £2,600,000, highlighting the potential benefits that could be unlocked with the right expertise and approach.
Our support proved valuable
Allowing business growth
Our successful partnership with one of the largest private dental practices in the UK stands as a testament to our commitment to excellence and compliance. By maximising their capital allowances and reducing tax liabilities, we have allowed them to continue to grow with extra financial support. Moving forward, we remain dedicated to assisting our clients in navigating the complex landscape of capital allowances and unlocking hidden financial opportunities.
5 December 2023
Capital Allowances ManualCapital allowances play a significant role in taxation. Allowing businesses to claim deductions for the depreciation of their assets. Among these assets, plant and machinery are frequently mentioned. However, the term “plant and machinery” is not explicitly defined in tax law. It should also...
22 November 2023
Autumn Budget 2023: Changes to Capital AllowancesThe Autumn Budget of 2023 has arrived, and with it comes significant changes and developments the government has put in place. Chancellor Jeremy Hunt delivered the statement on Wednesday, 22 November 2023. For businesses and individuals alike, these adjustments in tax policies can have far-reaching implications.
Our expert team are here to help answer any of your capital allowances questions or enquires you have about your commercial property.