Farm in Shropshire
In 2023, the owners of a farm in Shropshire sought the expertise of HMA Tax to explore potential tax relief opportunities.
Capital Allowance Claim for a Farm in Shropshire
The farm, purchased for £2.1 million, contained valuable embedded assets that could qualify for Capital Allowances.
Agricultural properties often feature substantial fixed plant and machinery that qualify for tax relief. Our specialists identified key assets, including:
- Electrical and water systems – essential for daily farm operations
- Specialist ventilation and heating – crucial for livestock welfare
- Drainage and waste disposal infrastructure – ensuring environmental compliance
- Farm roads and yard surfaces – fundamental to operational efficiency
Our Approach
To maximise tax relief, our experts leveraged Annual Investment Allowances (AIAs), ensuring the client benefitted from accelerated deductions on qualifying expenditure. By applying AIAs effectively, we identified £435,000 in Capital Allowances.
Despite initial assumptions that Capital Allowances had already been claimed, our forensic review uncovered a hidden tax-saving opportunity. Through an in-depth survey of embedded assets, we successfully compiled a detailed claim report, supporting the owner’s financial strategy.
By identifying £435,000 in unclaimed allowances (21% of the purchase price), we secured a £82,000 tax refund, delivering significant financial benefits to the farm.
Through our tailored approach, the farm’s owners unlocked substantial tax savings, allowing them to reinvest in new agricultural equipment and sustainability initiatives.