A fairly straightforward claim for two office units at Rotherbrook Court, Petersfield, Hampshire. Total cost of acquisition was circa £625k and the capital allowances identified were £145k. This equates to a tax saving of £29k over time at an income tax rate of 20%. The owner was the landlord of the properties as opposed to the tenant. In one of the properties the tenant had spent money on air conditioning amongst other things but the capital expenditure for this would be claimable by the tenant and not the owner.
Located in the North-West of England this was originally a new build food warehouse incorporating a large freezer unit. The total construction cost was circa £2.2m in 2009. The capital allowances we identified were circa £605k producing a tax saving over time of circa £120k for a 20% corporation tax payer.
This case was slightly unusual as we assessed the internal freezer unit was a piece of plant in its own right meaning that its cost, allowing for indexation, could be claimed in its entirety. This boosted the overall claim significantly.
“This case was made less complex because the landlord purchased the units directly from the developer meaning the capital allowances claims history was easier than most to establish.”