How did we help?
The client: Hotel operator
The works: Over a period of 4 years, the property underwent a full refurbishment to the guest amenities and in particular an upgrade to the bedrooms and en-suites.
The problem: Whilst carrying out works to install air conditioning to the bedrooms and new extract ventilation to the bathrooms, large amounts of asbestos were found within the services risers, ceilings and bathrooms. Then, further refurbishment of the bedrooms uncovered even more asbestos in the heating systems, particularly at radiator locations and to the pipework carrying water around the property.
Value of the LRR: In total we identified that £5.85m had been spent directly and indirectly to remove the asbestos. This resulted in the client claiming LRR of £8.776m which delivered a tax saving of £1.667m.
In conclusion: Taking the asbestos remediation, along with works to refurbish and renovate the property, we identified that 73% of the project expenditure could be written-off for tax in one way or another; either by qualifying for LRR, plant and machinery allowances, or revenue deductions.