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Category Archives: Case Studies

London Office Owner’s Surprise in Claiming

During our time as Capital Allowance specialists, we have encountered our fair share of commercial property owners who hold the strong belief that they are not entitled to claim allowances, or that claiming these tax refunds is simply ‘too good to be true’. Some take quite a bit of convincing before they believe their eligibility to claim, and once they’re on board, the results speak for themselves.

We recently encountered a client such as this, but what made this claim a little different was the sheer level of allowances they were entitled to. This was a London based client who owned an office in the heart of the city, so initially we could guess the kind of allowances that would be found. Typically, within central London, large commercial properties can contain many items that would qualify for capital allowances which can result in a high claim, especially since the original price of the property is likely to be high.

Despite the client’s potential to claim thousands of pounds in tax relief, they were completely unaware that they were entitled to these refunds and initially couldn’t get their head around the fact that they can actually claim cash refunds on items within their property. As with the majority of our clients, their first response was ‘my accountant will have claimed for Capital Allowances’, and upon which they realised this hadn’t happened they stated, ‘my accountant really should have claimed for this’. This is the common problem many accountants face, since they are being expected to do a job they are not qualified to do and without the necessary team in place, which can sometimes result in the accountant being blamed for the client missing out on thousands of pounds in cash refunds.

In addition to this, accountants do not have a specialist knowledge of the HMRC guidelines, and should not be expected to be able to deal with Capital Allowance claims. You wouldn’t go to your general dentist expecting them to fit your braces, you would go to an orthodontist who is specialised in that particular area of dentistry. Similarly with accountants, they simply can’t be expected to be able to deal with capital allowance claims because this is a very specialist area of tax, which is why a Capital Allowance team, such as ours, are necessary to process these claims.

Once the London based office owner understood this and realised their potential for a high claim, we immediately began the process of identifying a claim and submitting the report to HMRC. As expected, the report was accepted and the client received thousands of pounds in cash refunds. These tax refunds provided fantastic benefits to the individual and their business. Finding results like these are one of the reasons why we love doing what we do!

Great Results for Office Owner

We recently had a client who owned an office suite in a prime location, which gave us the initial impression that this could be a substantial claim. Typically, within offices around 35% of the original purchase price of the property can be identified as allowable, and for our client whose property was worth £4,800,000, we had an idea of the level of allowances that would be found.

Upon surveying the property, we managed to identify items such as air conditioning, kitchen and toilet fittings heating systems, security systems, radiators and more that could all qualify for tax refunds. These items are essential within every office block, and it is important for the owner to realise when they have been overpaying tax on items such as these.

As expected, the allowances identified came to a high figure of £672,560, resulting in a tax refund of £134,530 directly to the office owner. Our client was surprised at just how high the figure was, and confirmed the importance of undergoing a capital allowance claim for the benefit of the individual and the company.

One of the initial factors that compelled our client to employ us to investigate potential allowances was the fact that we only charge a fee once we have identified allowances, which meant that there were no upfront fees and initial costs were covered by us. What’s more, we have a 100% success rate with having claims accepted by HMRC and a positive track record of identifying allowances for our clients. This was a risk free exercise that produced fantastic results for our client, and we can continue to find these kind of results for other clients with similar properties.

Substantial Allowances Found Within Care Home

As capital allowance specialists, whenever we have a client who owns a care home, from the onset we know that they are likely to be entitled to a large amount of capital allowances, as long as they haven’t claimed before. Due to the nature of care homes, there are a whole host of items within the property that qualify for tax refunds, which adds up to a pretty hefty claim.

Once we found out that the property was worth £2,330,440, we got an idea of the scale of this claim and the type of allowances that would be found. The process itself was easy, stress free and required minimum input from the client, as with all our other clients. The client was unaware of just how much they could claim on their property and once we explained the importance of claiming, they soon saw these allowances as their right, not privilege, especially since they had been overpaying a great deal of tax, which we were about to refund to them.

Within the property, we identified allowances on items including boilers, sanitary ware, heating systems, kitchen items, security systems, door closers, suspended ceilings, lighting systems, air conditioning and more. As with all our other claims, these items are essential to the running of a care home and without which the property would not be able to function, so it was important for the owner to claim the tax refunds they deserved on these items.

Within the home, we identified £738,600 worth of allowances, which resulted in a cash refund of £89,820 to the property owner, upon which they soon realised that this was certainly a worthwhile exercise.

Whenever we survey properties such as this one with such a high amount of allowable items, we almost can’t believe that the client hasn’t made a claim before and that they have been sitting on a wealth of tax relief they never knew they were entitled to. The common reason for this is because the client believes that their accountant will have already dealt with any capital allowance claims, which is often not the case because accountants don’t have the specialist knowledge of this area of tax or a team in place qualified to deal with these claims. This is why it is important to employ specialist capital allowance experts, such as ourselves, to identify any potential claims.

Great Success for Dentist Surgery Owner

Over the years, standards in dental practices have significantly improved, which can often result in the potential for high Embedded Capital Allowance claims for surgery owners. With the use of highly specialised equipment, owners have the potential to claim allowances on these items, which we found recently with a client who was able to claim a significant amount of allowances on items within the surgery they practiced from.

Much to our clients’ surprise, we were able to identify a wealth of allowances within the surgery that was originally worth £104,880. Items such as air conditioning, specialist lighting, sinks and plumbing in each room, specialist equipment, security systems, emergency lighting, wiring and more all qualified for capital allowances. These items are considered part of the surgery and can be costly to run, which is why it was important for the owner to claim the tax refunds they were entitled to and see these refunds as their right, not a privilege.

After an initial free consultation with our business development experts, we arranged for a surveyor to assess the property upon which they identified these items that qualified for tax relief. Much to the delight of our client, we identified £34.5k of allowances which resulted in a cash refund of £6,976 to the surgery owner.

These refunds provided fantastic benefits for the property owner, and have the potential to increase the value of the property, so if the owner comes to selling the property, they can look back upon this exercise and see it as a very worthwhile activity that provided present and future benefits, and at no risk to the individual.

Cash Refunds for Showroom Owner

We recently completed a claim for a client who owned a showroom/warehouse. This client wasn’t really expecting to find many allowances on their property, but decided to give it a go anyway. Since our initial consultations are free and we don’t charge anything unless allowances are identified, this client had nothing to lose by ‘giving this a go’.

To the surprise of the property owner, we were able to identify allowances on items such as air conditioning, heating systems, lighting systems, door closers, cold water systems and more. These items were holding a wealth of tax relief.

Once we had surveyed the property, we knew this was a worthwhile task for the client, and they soon realised the importance of claiming these allowances, since were able to identify £127,770 of allowances on their property worth £470,050, resulting in a cash refund of £23,500 direct to the property owner!

This case shows the importance of arranging a meeting with us, no matter whether you think a claim might be small or even non-existent, it still has the potential to be a very worthwhile task, with no risk to the property owner. We only charge a fee once we identify allowances, so investigating a potential claim will cost the client nothing, and will confirm what they are entitled to.

The tax refunds provide a wealth of benefits, because as well as the cash itself, the value of the property could increase as a result of making a claim, which adds future benefits on top of the present benefits to making a claim. If you own this type of property, then why not get in touch with a member of our team to see if you could benefit from our specialist capital allowance services? You have nothing to lose!

Fantastic Results Found on Mixture of Properties

We have completed claims on many different properties in the past, however one of our most interesting claims was a client who owned various properties under one company, including retail properties, public house and an industrial estate. From the onset we knew that this client certainly had the potential for a substantial claim.

Typically within a retail property, around 20% of the original purchase price of the property can be identified as allowances, and the figures are around 32% for pubs and 15% for industrial estates, so on one property alone this client had the potential for a substantial claim, and adding two other properties made a combined property worth of £6,307,513. So we knew that this would be a very worthwhile activity for the client.

Within the property, we identified allowances on items such as sanitary ware, kitchen fittings, door closers, lighting systems, suspended ceilings boilers, security systems and more.

As expected, the allowances found were high, as we identified combined allowances of £1,701,650, which resulted in a hefty tax refund of £105,598 to the property owner. If the owner hadn’t employed us to identify a claim, they could have missed out on thousands of pounds of cash refunds and potentially continued to overpay large amounts of tax.

Some may think that it would be a lengthy and time-consuming process to claim such a level of allowances, however the reality was the complete opposite. We dealt with all the complicated details and communicated with HMRC to receive the refunds, whilst the property owner simply provided the basic details of the property and then just waited for their refund! Sound like an exercise worth doing? Get in touch with us today to see if you could make a claim.