Investing in property means much more than just acquiring a physical asset. As many property owners know, it requires an intricate consideration of many factors to best optimise returns. Recently, our Claims Specialists undertook a comprehensive review of a London property acquisition, uncovering £300,000 in previously unclaimed Capital Allowances, a significant gain for the new property owner.
The Property
The property acquisition in question, was purchased for £1.5 million, represented a blend of sophistication and commercial potential. The investor envisioned transforming it into a boutique space, marrying elegance with commerce. This endeavour included considered fit-outs and refurbishments aimed at enhancing the property’s aesthetic and functional appeal for a predetermined tenant on a long term leasehold contract.
Fit-Outs & Refurbishments
The refurbishments planned for the property acquisition provided an opportune moment to capitalise on Capital Allowances. These allowances, available on investments in retail fixtures and fittings, offer substantial tax relief to property owners. However, claiming these items requires a thorough understanding of legislation and diligent understanding of the construction process. Fortunately, our tax experts and property surveyors are specialists within these fields.
Our Approach
Our team embarked on a review of the property acquisition and associated costs. Despite initial assertions by the accounting and legal teams, our in-depth surveying and specialist input revealed a significant portion of unclaimed Capital Allowances.
Our award-winning team of surveyors, claims specialists and accountants produced a highly detailed claim outlining eligible assets and their corresponding values. Collaborating closely with the owner’s financial advisors, we ensured the seamless integration of our findings into their overall tax strategy. This collaborative approach was instrumental in maximising tax relief while adhering to regulatory compliance.
Results and Impact
Through our tailored approach, the property acquisition achieved a notable tax saving of over £60,000. This unlocked the full potential of their investment and underscored the importance of leveraging Capital Allowances in commercial property investment. Beyond the immediate financial gains, the exercise exemplified the value of a thorough review and proactive tax planning.
The case of this property highlights the significance of proactive tax management in property investments. By conducting a comprehensive review and uncovering £300,000 in unclaimed Capital Allowances, HMA Tax facilitated substantial tax savings for the investor. This success story underscores the importance of partnering with knowledgeable tax professionals to navigate the complexities of property taxation effectively. Stories like these are ubiquitous when claiming Capital Allowances with HMA Tax.
If you are considering investing in renovations and refurbishments for your commercial property, please contact Amy Lombardi, Claims Specialist, at 01384 904090 or amy@hma.tax for further information.
Amy Lombardi
Claims Specialist
If you are considering investing in renovations and refurbishments for your commercial property, please contact Amy Lombardi, Claims Specialist, at 01384 904090 or amy@hma.tax for further information.
