Hotels & Guest Houses

This guest house in Whitby was purchased for £422k in 2012. The original purchase contract listed “fixtures” valued at £15k.  However when we came to undertake our detailed capital allowances survey and analysis of the property we discovered a further £110k in unclaimed capital allowances. The owners, who are 40% tax payers, will benefit from tax savings over time of circa £44k.

This hotel, on the edge of the Cotswolds, was purchased for £1.295m. After extensive research it was identified there had been no previous capital allowances claims on the property. Therefore under the legislation, that was relevant at the time, the owners were free to make an unrestricted claim. The claim produced capital allowances of £336k which meant a tax saving over time of circa £135k as the owners were both 40% income tax payers.

This hotel in North Wales was purchased at a cost of £1,891,800. The claim we undertook on the property did include some restriction in entitlement to claim. This included the vendor signing a Section 198 Tax Election to transfer across unclaimed capital allowances under their ownership. The end result was a total claim of £309,064 which represents an overall tax saving, over time, of £61,812 based on the prevailing Income Tax Rate at the time of 20%.

Another Hotel in North Wales which was purchased for £575,000. We were able to combine a transfer of capital allowances from the seller via a Section 198 Tax Election with an Integral Features Claim for our client. This produced a total claim of £110,164 meaning a total tax saving over time of £20,913 based on a Corporation Tax Rate of 19%.