King-size tax savings for Manchester Aparthotel

07 September 2017

The client

A property developer based in the North West acquired a six-storey Aparthotel located in central Manchester worth just under £3m.

What RSM did

Our capital allowance team carried out a review on the acquisition of the Aparthotel and identified £640,000 of qualifying expenditure, generating over £128,000 of tax savings.

With each claim, we start by verifying whether there had been any prior claims for the fixtures by a previous owner. We were involved in reviewing the legal documents for the acquisition to make sure our client could claim the full amount of capital allowances. 

To fully understand the opportunity, our tax team and in-house surveyor visited the Aparthotel, along with the property manager to carry out a survey of the property. We identified and valued the fixtures that qualified for tax relief on a room by room basis. 

The client received a report summarising our research, findings and value of the fixtures and land. This was submitted to HMRC in the companies’ tax return to support the claim that generated significant tax savings in the year of expenditure as well as going forward.

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