Refurbishment of Office Accommodation

Proposition
Our client renegotiated their occupation lease at the same time taking additional space within the building they occupy. As part of the process the office accommodation was subject of a high quality refurbishment and fit out. The total expenditure incurred was circa £1.475m.

Solution
The specialist capital allowances team were appointed early in the project to maximise the overall value and cash flow of the tax relief available and worked closely with the clients design team. Contractual provision was made for the provision of information and requirements to select Enhanced Capital Allowances qualifying plant where available.

The office accommodation had new air conditioning installed and it was important to review the specification of the system prior to the contractor committing to order equipment.

As the works were carried out to an existing property it is also important to ensure all works incidental to installation of the qualifying items were identified to further enhance the claim.

Result
The total capital allowances claim was £1.1m of which £690,000 was allocated to the General Pool, £206,000 to the Special Pool as Integral Features and £204,000 was identified as qualifying for Enhanced Capital Allowances.

A total tax saving of £440,000 was achieved.

Testimonial

“We were very impressed with the proactive approach of the capital allowances specialists in liaising with the construction design team in enhancing the sustainability of the project while maximising the cashflow benefit of the tax relief via specifying Enhanced Capital Allowances qualifying equipment. The capital allowances claim will reduce the expenditure incurred on our office fit-out by around 30% and we are very grateful to the capital allowances team.”