Case Studies

CAPITAL ALLOWANCES CASE STUDIES

FURNISHED HOLIDAY
FURNISHED HOLIDAY LET
FURNISHED HOLIDAY LET

FURNISHED HOLIDAY LET

Expenditure: £305,000
Total qualifying expenditure identified: £52,781
Generating a tax saving of: £21,112

The client purchased a cottage in the heart of one of the UK’s National Parks for £305,000 which qualifies as a Furnished Holiday Let.

Elect were instructed by the client’s accountant to identify and value qualifying items in the property for a capital allowances claim.

We completed a thorough room by room survey of the property using our bespoke app to gain the maximum amount of detail for the claim.

As a result, the total qualifying expenditure identified by our valuation was £52,781, generating an actual tax saving of £21,112 for the client.

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VETERINARY PRACTICE

Expenditure: £144,432
Total qualifying expenditure identified: £92,131
Generating a tax saving of: £17,505

The client leases an independent veterinary practice situated in Norfolk.

The client carried out improvement works totaling £144,432.

The practice has numerous consulting rooms, surgery rooms, an x-ray room, prescription room, two receptions and offices.

We were instructed to make a Capital Allowances claim and identify any qualifying fixtures ensuring that the maximum tax benefit was generated on behalf of the client’s company.

Our work identified and allocated Integral Features and other qualifying plant totaling £92,131.

VETERINARY PRACTICE
VETERINARY PRACTICE
VETERINARY PRACTICE
OFFICE & WAREHOUSE
OFFICE & WAREHOUSE
OFFICE & WAREHOUSE

OFFICE & WAREHOUSE

Expenditure: £1,732,500
Total qualifying expenditure identified: £609,000
Generating a tax saving of: £115,710

The client specialised in innovative electrical testing equipment and were expanding their business to the UK market.

In 3Q2017 they incurred expenditure of £1,732,500 constructing a new head office building in Staffordshire for their UK operations.

Elect were instructed by the client’s accountant to complete a full survey of the building and analysis of the expenditure.

Elect’s valuation identified over £609,000 in qualifying expenditure for capital allowances. As a result, the tax saving for the client was in the region of £115,710.

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OFFICE BUILDINGS​

Expenditure: £3,800,000
Total qualifying expenditure identified: £800,000
Generating a tax saving of: £152,000

The client constructed three modern office buildings in Peterborough. Expenditure on the project as a whole was in the region of £3,800,000.

The offices were built to shell and core and the total expenditure included external works, infrastructure works and Section 106 highway works.

Elect were instructed to carry out surveys of the new buildings and carry out an analysis of the expenditure.

As a result of Elect’s valuation, qualifying expenditure for capital allowances of nearly £800,000 was identified for the client to use to reduce their tax liability going forward.

OFFICE BUILDINGS​
OFFICE BUILDINGS​
OFFICE BUILDINGS​
HOTEL
HOTEL
HOTEL

HOTEL

Expenditure: £4,588,806
Total qualifying expenditure identified: £3,308,313
Generating a tax saving of: £661,663

A Hotelier’s accountant recommended Elect to carry out an analysis of their two hotel properties in London.

Property one was a 118 bedroom hotel with 3 conference rooms and 2 on site restaurants which had been recently refurbished.

Property two was an 8 storey hotel with 142 en-suite bedrooms with a minor refurbishment.

We completed a thorough room by room survey of the properties, and subsequent valuation to establish the maximum available qualifying expenditure.

As a result, we identified £3,308,313 in unclaimed capital allowances for this client.

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DOCTOR’S SURGERY

Expenditure: £300,000
Total qualifying expenditure identified: £167,000
Generating a tax saving of: £66,800

The client purchased a large residential property situated in Coventry.

In 4Q2019 they incurred expenditure in the region of £300,000 extending and converting the property into a functional doctor’s surgery.

Elect were instructed by the client’s accountant to carry out a forensic survey of the conversion works and analyse the project expenditure.

As a result of the analysis, Elect identified just over £167,000 (55%) of expenditure qualifying for capital allowance.

The client was able to utilise this in their Annual Investment Allowance, generating a tax saving of £66,800.

DOCTOR’S SURGERY
DOCTOR’S SURGERY
DOCTOR’S SURGERY
OFFICE​
OFFICE​
OFFICE​

OFFICE​

Expenditure: £5,239,500
Total qualifying expenditure identified: £1,513,491
Generating a tax saving of: £287,563

The client purchased a large office building from a charity in Peterborough for £5,000,000.

Elect were instructed by the clients accountant to identify and value qualifying items in the property for a capital allowances claim.

We completed a thorough room by room survey of the offices and ancillary warehouses to gain the maximum amount of detail for claim.

As a result, the total qualifying expenditure identified by our valuation was £1,513,491.

The client was able to utilise approximately £350,000 of these allowances in the first year, amounting to a tax saving of around £66,500.

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HOLIDAY PARK

Expenditure: £7,200,000
Total qualifying expenditure identified: £1,447,395
Generating a tax saving of: £275,005

The client purchased a holiday park on the Welsh coast for £7,200,000 and instructed Elect to complete a capital allowances survey and valuation of their expenditure. 

Our surveyors attended the leisure park and completed a thorough survey of all the items qualifying for capital allowances, including underground cabling to the park homes, toilet and shower blocks and office buildings.

As a result, Elect identified a total of £1,447,395 of apportioned capital allowances (over 20% of the purchase price) available to the client, of which £1,040,187 could be relieved in year one through use of the annual investment allowance.

HOLIDAY PARK
HOLIDAY PARK
HOLIDAY PARK

R&D CASE STUDIES

BIOSCIENCE
BIOSCIENCE
BIOSCIENCE

BIOSCIENCE

Scheme: SME
Qualifying R&D Expenditure: £109,963
Tax Credit: £36,734

Elect were invited to review the work of specialists in the area of medical research to determine whether the project undertaken qualifies for R&D tax credits.

After detailed discussions with the client we established an entitlement to make a claim under the SME scheme (the company has less than 500 employees, turnover less than €100m, balance sheet less than €86m).

The company has designed, and is developing pioneering  technologies that will resurrect antimicrobial therapies made ineffective by increasing microbial resistance.

These solutions will impact one of the world’s most significant clinical problems by not only treating antibiotic resistant infections, but also by preventing them in susceptible patients. The technology will make existing antibiotics work effectively again, as well as maintaining the efficacy of newly developed antibiotics. It is applicable to all antibiotic classes, all known resistance mechanisms and all bacteria.

The claim was formed largely from a proportion of staff costs, consumables and contractor costs provided the client with a significant tax credit enabling them to continue their amazing work.

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PACKAGING MANUFACTURER

Scheme: SME
Qualifying R&D Expenditure: £29,458
Tax Credit: £7,276

In this instance, Elect were asked to review the works being undertaken by the client company who specialise in finding solutions to product packaging problems.

A desktop study gave us an understanding of the limitations of products currently available in the marketplace and the background to determine that the development work being undertaken was qualifying.

Over the period of the claim this business was involved in numerous product developments for both nationally and internationally known business requiring unique packaging to fulfil needs in terms of strength, resilience, size and shape.

This involved the testing of a variety of materials for cost and aesthetic purposes as well as various stress tests to ensure efficacy in differing situations.

Development costs formed from dedicated staff time and materials made up this significant uplifted claim for relief under the SME scheme for this client.

PACKAGING MANUFACTURER
PACKAGING MANUFACTURER
PACKAGING MANUFACTURER
ROAD ILLUMINATION
ROAD ILLUMINATION
ROAD ILLUMINATION

ROAD ILLUMINATION

Scheme: SME
Qualifying R&D Expenditure: £77,853
Tax Credit: £25,721

Here, Elect were invited to review the development of a product that enhances the amount of ground level illumination and visibility on darkened roads.

This vision was to develop a ground level illuminator that incorporated a long beam of light (as well as other features) to provide greater road level illumination, visibility and therefore enhanced safety for drivers, instead of regular lines of paint that only become visible when vehicle headlights illuminate them.

Following extensive research and testing of illuminators over a period of 2 years the business has found significant success with a road stud incorporating this high intensity linear illumination on the road surface which can also react with conditions. As a consequence a patent application has been approved in the UK and International approval is pending.

The business is also continuing its development activity in this area helped by the additional relief available to them under the SME scheme.

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UV SECURITY TRAY CLEANER

Scheme: SME
Qualifying R&D Expenditure: £215,000
Tax Credit: £53,105

Elect were instructed by a client in the airport security equipment sector to complete an R&D claim on their recent development.

Highlighted by the COVID-19 pandemic, the client identified an opportunity to harness the valuable properties of UV-C cleaning technology and apply it to automate the disinfection of security trays in airports.

The client designed, prototyped, and carried out microbiology testing on their new UV-C Portal in which trays passing through are exposed to UV-C radiation emitted from mercury lamps in order to kill any harmful bacteria. This development will prove instrumental in improving cleanliness of security trays for staff and customers, where historically it was a manual cleaning process carried out every 6 months with little to no emphasis on quality control.

It was unknown if a solution which would thoroughly clean the trays without disrupting the tray return process was feasible, and so the client undertook the necessary R&D to determine viability. As the tray return systems differ in size, speed and configuration depending on manufacturer, they designed a flexible solution to adapt to each manufacturer that is installation and maintenance friendly.

As a result, the client incurred £215,000 expenditure on their qualifying R&D activities. Through Elect’s analysis we generated enhanced R&D expenditure of £494,000, amounting to an additional tax saving of £53,105.

UV SECURITY TRAY CLEANER
UV SECURITY TRAY CLEANER
UV SECURITY TRAY CLEANER