Family-Owned Farm in Yorkshire
In 2023, the owners of a family-run farm in Yorkshire engaged HMA Tax to explore potential tax relief on their recent £1.6 million property purchase.
Capital Allowance Claim for a Family-Owned Farm in Yorkshire
In 2023, the owners of a family-run farm in Yorkshire sought expert guidance from HMA Tax to explore potential tax relief opportunities. Having recently purchased the £1.6 million property, they wanted to ensure they were maximising all available Capital Allowances. Given the scale of the farm and its diverse infrastructure, there was a strong possibility that embedded assets within the property could qualify for significant tax relief.
Many farm owners are unaware of the hidden Capital Allowances within their property, often assuming tax relief applies only to moveable equipment. However, our assessment revealed substantial qualifying assets embedded in the infrastructure. Key findings included cold storage and refrigeration units essential for produce preservation, livestock housing ventilation and heating to ensure optimal animal welfare, and drainage and waste management systems crucial for regulatory compliance. Additionally, the farm’s on-site electrical infrastructure—integral to daily operations—also qualified, further increasing the claim’s value.
Our Approach
HMA Tax took on the challenge of identifying any unclaimed Capital Allowances available to the industrial site owner. Our team conducted a detailed review of the costs incurred during the renovations and identified that a significant amount of the capital allowances available had not been claimed.
Our team used their extensive knowledge of Capital Allowances to identify £3.2m of unclaimed capital allowances, which were available to the owner. We provided a detailed report highlighting our findings, which included a list of assets that qualified for capital allowances, and the values that could be claimed.
Once we had identified the unclaimed capital allowances, we worked closely with the owner’s accountants to ensure the tax savings were maximised. Our team provided support throughout the process, from preparing the necessary documentation to liaising with HMRC to secure the tax savings.
Thanks to HMA Tax’s expertise, the industrial site owner was able to secure significant tax savings through the identified capital allowances. The owner was able to claim £380,000 in unclaimed capital allowances, resulting in a tax saving of over £171,000.