About The Claim
Our client specialises in the development of high-quality industrial units. Their expertise is reflected in their latest project involving the construction of three large warehouses. These warehouses were built to a certain specification, allowing tenants the flexibility to carry out their own fit-out as needed. The claim involved the identification and confirmation of qualifying items within the warehouses to maximise the potential tax savings.
Initially they attempted to manage this claim independently, identifying around £600,000 in qualifying items with the assistance of a quantity surveyor. However, they sought our expertise to ensure no opportunities were overlooked.
Important...
A capital allowance claim requires a broad set of skills. Our team includes a quantity and a capital allowance surveyor, a property lawyer, tax specialists, and even a former HMRC inspector, each playing a vital role in our process. Their combined expertise ensures that every aspect of the claim is meticulously handled, maximising the potential tax savings for our clients.
Our Approach
The primary challenge was the need for close cooperation with the client to enable our surveyor to accurately identify and confirm the qualifying items. This collaboration was crucial to ensure all potential tax-saving opportunities were fully explored and documented.
We began by conducting an initial review of the information requested and provided by our client. This was followed by preparing a detailed proposal outlining the potential tax-saving benefits for the client. After reaching an agreement, our surveyors conducted a physical survey of the property to prepare a comprehensive inventory of items, which were then valued. Our technical department analysed this valuation to determine what was claimable and ensured proper categorisation in the capital allowances pools.
We obtained and cross-checked detailed expenditure information from the client against our physical survey to verify quantities and cost values. A copy of the surveyor’s inventory was sent to the client for review and approval. Finally, we prepared a Claim Summary detailing the claim, projected tax savings, and necessary tax return entries, which were then passed to the client’s accountants. Through our thorough approach, we discovered significantly more qualifying items than the client initially identified.
Examples of some of the embedded qualifying items that we found...
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Attenuation tanks
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Electric vehicle charging points
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Passenger lifts
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Solar panels
An observation from our Managing Director, Chris Roberts...
“Although the project involved large expenditure of over £21 million, it was important to recognise that more than one-third of that cost was attributed to land acquisition, with fit-out expenses to be incurred by tenants. Additionally, we were aware that the client had an existing claim figure from another source. Our task was to ensure that all qualifying items were accurately identified and claimed, resulting in a substantial enhancement of the initial claim.”
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