Office

A client was an international company based in Hong Kong. They decided to expand their operations by acquiring an office building in the heart of the city. The building was purchased for c.£120 million. The vendor acquired the property in 2001 and confirmed that it had claimed capital allowances and proposed a CAA2001 s198 election for only £1. 

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The client’s accountant approached us for some specialist advice. Due to our knowledge of legislative changes driven by Finance Act 2008, we identified that the vendor did not have entitlement to claim on the widened definition of integral features, such as general lighting and cold water etc. The client believed there was only £1 allowance initially, with our understanding of the legislation and specialist capital allowances skills, we have identified an additional integral features of c.£3 million, equivalent to £570k of tax savings.

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Several years later, the client has carried out various CAT A and CAT B fit out works to one floor followed by an end of lease. The total fit out expenditure is c.£2 million. Our specialist involvement resulted in circa 70% of the expenditure qualifying for capital allowances, which generated c. £140k of tax savings.