Hotel in Bristol
A chain of hotels was purchased for £14m in 2016. Our team worked closely with the owner to identify and value any unclaimed Capital Allowances, and were able to secure £2.2m in tax relief.
Capital Allowance claim for a large office building in Birmingham
When a chain of hotels was purchased for £14m in 2016, the new owner faced the challenge of improving guest experiences and increasing the properties’ value.
The owner made much-needed renovations and upgrades to the properties, increasing it’s value and allowing for an additional AIA claim to be made once the fit out and refurbishment was complete.
Our team of Capital Allowances specialists worked closely with the hotel owner to identify and value any unclaimed Capital Allowances. The result was a substantial £2.2m in tax relief, which provided the owner with the resources needed to make the renovations and upgrades.
Our Approach
One of the key allowances that helped the hotel owner was the Annual Investment Allowance (AIA). The AIA allows businesses to claim 100% tax relief on their qualifying plant and machinery investments up to a certain threshold. In this case, the owner was able to make a successful AIA claim after the renovations were complete, which added to the substantial savings they had already secured through Capital Allowances.
The renovations and upgrades not only increased the value of the properties, but also improved the guest experiences, which helped to drive revenue and profitability. The additional AIA claim allowed the hotel owner to continue making valuable investments in their operations and maintain their competitive edge.
At HMA Tax, we understand the importance of tax incentives for businesses. By taking advantage of the various Capital Allowances, such as the AIA, businesses can secure significant tax savings, which can then be reinvested back into the business to drive growth and success.
If you’re a commercial property owner or occupier, don’t miss out on the benefits of Capital Allowances. Contact HMA Tax today to schedule a consultation and see how our experts can help you secure millions in tax relief.
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