Furnished Holiday Letting – additional allowances of £450,000

This project consisted of the retrospective analysis of the conversion costs for altering a number of outbuildings on a large country estate into 6nr luxury holiday lettings at a cost of approximately £1,500,000.

The construction works were managed by the owner, who procured the construction works by buying all of the materials, hiring plant and employing labour to carry out the works.  Our work required a detailed allocation of all materials, plant hire and labour costs to the items that qualified as plant & machinery.  

Our work resulted in the identification of £450,000 of plant & machinery allowances.

Our client was an individual and our work produced an overall tax saving for him, a 40% taxpayer of £180,000

Furnished Holiday Letting Cessation – allowances protected of £310,000

Our client’s furnished holiday letting business was not a success.  Our client ceased letting the property on a holiday letting basis and reverted to letting the properties on assured shorthold tenancies.

The cessation of trade triggered an open market disposal value to be brought into account for the plant & machinery upon which capital allowances had been claimed.

HMRC sought a disposal value of £450,000.  We negotiated an open market value of the items that had previously qualified for capital allowances in the sum of £140,000.

Our work prevented a claw-back of £310,000 of plant & machinery allowances.

Our client was an individual and our work produced an overall tax protection saving for him, a 40% taxpayer of £124,000.

Student Accommodation – additional tax saving of £1,800,000

Our client has a portfolio of approximately 3000 bedspaces in a number of bespoke, purpose designed cluster flat student accommodation blocks adjacent a number of education establishments. The client had made full claims to capital allowances in accordance with the rules that applied at the time.

We had developed an innovative procedure and secured tax savings for our client equating to approximately £600 per bedspace.

Unfortunately, legislative changes mean that this procedure is no longer capable of being applied to other similar projects.