Capital allowances are one of the most useful and inexpensive ways for hotel businesses to mitigate their corporate tax liabilities on embedded assets within their property.
This is because hotels require considerable investment; the initial capital for the purchase of the property as well as the annual capital expenditure for its upkeep and maintenance. Careful tax planning, through a capital allowance claim, can lead to a significant relief on these investments.
Effective tax management for hotels goes far beyond basic items such as tables, lifts, heating and cooling systems. Hotels typically have a high proportion of bespoke trade related assets that ordinarily would not qualify for allowances in other commercial properties. These unique, trade-related, assets include; swimming pools and acoustic insulation, along with other items that contribute to the environment. These facilities and assets can contribute to a generous reduction in your tax liability
HMA Tax works with hotel managers across the UK in identifying thousands of pounds of capital allowances so that our clients receive significant ongoing tax relief.
Typically, we would expect to find around 35% of the original purchase value of the property in previously unidentified capital allowances, which in turn can be claimed as significant tax relief and benefits that improve cashflow for years to come.
To find out more, try out our Claims Estimator or contact one of our claim’s specialists.