About the claim and challenges
Our team was approached by Catesby IC Property Ltd who built a commercial property (an Innovation Centre with flexible office space and meeting rooms etc) and was interested in exploring the potential for a capital allowance claim. We offered a comprehensive service to ensure that the client was able to maximise their tax relief. The challenge that we faced was that the client needed to meet a fast-approaching deadline and apportion their claim accurately across the correct accounting periods.
An observation from our Claims Coordinator, Ruby Whilock...
“Our team’s response to the client’s commercial property capital allowance claim was commendable. Despite the challenge of meeting the tax return submission deadline, we efficiently gathered information, conducted on-site surveys, and valued items. By preparing a comprehensive claim summary, the claim was accurately apportioned and achieved an impressive £241,409 overall tax saving for the client. Our expertise in Structures & Buildings Allowance and capital allowances, along with thoughtful consideration for refunds, resulted in significant savings and showcased our commitment to delivering excellent service!”
Our Approach
We began by obtaining all the relevant information such as cost schedules, accounting documents, drawings & specifications to understand the build project. We then confirmed our approach and illustrated the potential benefits a full capital allowance review could achieve. We our chartered surveyors carried out a full on-site survey of their premises as part of our comprehensive process.
Next, our chartered valuers valued the items in the property and our specialist capital allowance experts made sure that only qualifying items were claimed. We then produced a claim summary and our tax advisors detailed the entries to go in the current tax returns. We provided this information to the client’s accountant who wanted to produce an amended tax return for 2021 themselves and included the balance of the claim in 2022.
Examples of some of the embedded qualifying items that we found...
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Air conditioning
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Mains switch gear
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Lighting
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Electric switch gear
Finally...
We issued final letters and reports and provided aftercare to ensure that the client and accountant were happy with the outcome.
Our work resulted in an impressive overall tax saving of £241,409 for our client. This included formulating a claim for structures & buildings allowance as well as the capital allowances claim, which included annual investment allowance and super-deduction. By meeting the deadline and apportioning the claim correctly, we were able to maximise our client’s tax relief and provide them with significant savings.
“Our experience working with the CARS team was good overall. We tend to prefer to work with independent companies that are specialists in their field rather than engaging with big, expensive general accountancy firms, so the fact that CARS ticked those boxes suited us perfectly. The people were great and easy to work with. It was good to be able to talk directly to those that were working on the claim. We also appreciated the flexibility when it came to paying fees. We’re newcomers to the world of CA so the idiosyncrasies of this tax break appear pretty baffling, therefore we were a bit worried about what kind of level of detailed information the team would need but this was unfounded – they seemed happy with the supplier invoices and breakdowns we had. I would happily recommend them to others.”
Matt Cross | Director
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