It is always worth checking the history when investing in a new commercial venue.
A construction company based in Wales bought an ex-University property with the aim of turning it into a vibrant wedding venue. With significant refurbishment, including building a new orangery amongst the field of yurt accommodation, they asked our capital allowances experts what relief they could claim back. As the property was previously used by a university, a non-tax payer, they had never previously made a claim.
What RSM did
Our capital allowances team helped carry out a review for the acquisition, construction and refurbishment works on site to maximise the tax relief available to them.
Firstly, we needed a detailed understanding of the capital allowance history for the property. Although the University couldn’t make a claim, we need to check if any other previous owners had done so. As the review looked at the acquisition, construction and refurbishment expenditure, we had to be thorough in the clients’ tax computations to make sure all bases were covered. Once we had a full picture we carried out a full capital allowance review and successfully identified £400,000 of allowances, saving our client £80,000 in tax.