tax relief

£200k tax relief secured for industrial rental company

tax relief

Case Study18th Jan 2022

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Our Client 

A company that rents out industrial and office buildings. AAB identified that significant tax relief in Capital Allowance was available on expenditure incurred constructing new industrial units over a number of years.  

Our Approach 

  • Our Specialist Capital Allowance Team was engaged to identify and maximise the expenditure qualifying for relief.  
  • Fact finding meetings were held on sites to consider contents of buildings and establish items of expenditure likely to qualify for Capital Allowances 
  • A detailed review of expenditure was carried out to establish qualifying items of capital expenditure and rate of Capital Allowances available 
  • A summary report of qualifying expenditure was prepared to support the claim for tax relief on qualifying expenditure 

The Outcome 

  • Corporation Tax liabilities of the previous two years were reduced, providing a tax repayment in excess of £200,000  
  • Substantial expenditure qualifying for Capital Allowances identified 
  • Of the £2m spend on one industrial unit the following expenditure qualifying for Capital Allowances was identified: 
    • 48% – Main Pool at annual rate of 18% 
    • 7% – Special Rate Pool at annual rate of 8% 
    • 3% – Qualified for 100% rate of Capital Allowances 
  • Of the £2.2m spend on an office building the following expenditure qualifying for Capital Allowances was identified: 
    • 5% – Main Pool at annual rate of 18% 
    • 18% – Special Rate Pool at annual rate of 8% 
    • 11% – Qualified for 100% rate of Capital Allowances 

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