Fit-out and refurbishment project tax reliefs
The owner of one of London’s most prestigious office buildings engaged us to carry out a full analysis of expenditure incurred on a program of renovation and refurbishment.
The project spanned four tax years requiring us to prepare year-end claims for each period to ensure that our client took full advantage of the tax reliefs available as early as possible.
- Project type: Review and analysis of expenditure incurred on the refurbishment of a major London office building
- Total expenditure: £32m
- Total plant and machinery allowances: £14m of which £4.2m qualified as enhanced capital allowances (ECAs)
- Total tax saving @ 20%: £3.34m including identification of revenue deductions and Land Remediation Relief
The project encompassed the stripping out to shell and included the removal of asbestos, providing an additional £180k cash flow benefit. Furthermore, we worked very closely with the design and mechanical & electrical teams to maximise the amount of expenditure qualifying as enhanced capital allowances. This resulted in over £800k of first-year allowances further improving cash flow during the construction program.
This was a challenging project with a great deal of complexity requiring us to liaise with a variety of stakeholders including internal property and finance teams and external contractors and advisors. We provided a central function ensure that information flow was maintained and all relevant parties understood the benefits of our service and the best way to achieve the desired outcomes.