Capital Allowances Freezers
This is a capital allowances case study for commercial property. Please do not waste time rushing to your kitchen to see if there is a wad of cash in the ice-box. Industrial freezers used in commercial properties are actually the subject of this capital allowances case study. We recently completed a capital allowances claim for a property in the North-West. The owners had constructed it themselves in 2007 i.e. it was a new build project.
The property had been constructed by a food distribution company at a cost of £2.1m . From the owners description we believed the property was a a fairly standard warehouse with offices. Therefore we estimated the capital allowances at approximately 15% of the build cost or circa £300,000. This still would have given a respectable tax saving of £60,000 over time.
However our survey revealed a large percentage of the property was occupied internally by a purpose built freezer. We concluded the construction cost of this freezer was claimable in its entirety i.e. it represented a piece of plant in its own right. In short this doubled our original pre-estimate for the property so that the final capital allowances claim came to circa £604k. Hence the title of this post as the freezer added an additional £60,000 tax saving over time.
So if you do have a large industrial freezer in your warehouse (or just have a warehouse) and you haven’t investigated the merits of a capital allowances claim then please feel free to contact us!!
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