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Why Hotels can claim so much in Embedded Capital Allowances

By July 8, 2016 No Comments

We work with people from many sectors so we thought we would look at a specific sector to show how effective and in some cases business changing it can be to conduct an Embedded Capital Allowances review of the commercial property involved in the business. Of all the highly effective areas we can look at, hotels is probably the absolute pinnacle of potential due to the nature of the property used in such a business.

Embedded Capital Allowances are applicable to a host of fixtures and fittings embedded within a building when it is purchased and/or added after purchase. Items such as lifts, radiators, heating systems, cold water systems, air conditioning, suspended ceilings, bathrooms, kitchens, security systems and fire alarms. These represent just a few examples of items that are frequently part of a building when its purchased and included in an overall price paid for the building. They are also typical of things that are included in any refurbishment, improvement or extension that may be done after the initial purchase.  All of these things (and more) attract significant relief under the terms of the 2001 Finance Act but are rarely claimed because it is complex and requires a specialist team to identify and quantify the amounts that can be claimed. Those amounts are considerable with hotels frequently achieving over 30% of the original purchase price identified as relating to claimable items. So if you paid £500K for your hotel you have the potential of a £150K claim.

All of that is done on a contingent basis so you pay nothing until the work is done and only then a small percentage of the amount identified as allowances and subsequently accepted by HMRC. A safe and effective way to put cash back into the business now and in the future.

Does it work? Can Headley Meredith Associates really deliver on these promises?

Here is a quotation from a client we work with who is also an accountant.

“I can, without hesitation, recommend the services of Headley Meredith Associates. They have provided me with a first class service and I have found them to be extremely thorough, informative and proactive throughout.”

Carl A Hall – Financial Accounting Services Limited

This is a risk free exercise, has little or no disruption to your business and potentially offers the greatest benefit available compared to any other business. If you own a hotel then this should be seen as a natural part of your cash flow planning and fundamental to good financial management of your business. To find out more on a totally commitment free and no cost basis contact us here.

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