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A Nursery group has experienced a significant financial windfall through completing an Embedded Capital Allowance claim with HMA Tax.

The Nursery group purchased 5 properties for a total of £2.4 million, with an additional £620,000 of repairs made to the properties. This was a significant claim and whilst there were many obvious items, such as loose furniture and fittings which accountants easily identify and segregate to allowances, over 70% of the allowances were identified, value and claimed by the team at HMA Tax.

In order for our expert team to claim the maximum allowances available, we had to look at two key elements on behalf of the Nursery group:

1) Repairs & Improvement Costs

In the case for this Nursery Group, their accountant had claimed for some of the improvements made, but not all available.

For most nursery refurbishment there is typically around 30% or more expenditure that is considered qualifying expenditure, when identified and valued correctly. So, it is important that when you are making repairs, you contact a Capital Allowance specialist at an early stage.

This is due to Embedded Capital Allowance claims requiring a specialist to correctly identify, value and claim these costs and separate qualifying and non-qualifying items.

2) Plant & Machinery Items:

In addition, our surveyors and tax specialists will identify and claim for all those original items that were in the building when you bought it. Things that your accountant won’t know about. This is a very specialist sector and is like asking your GP to perform surgery on you, it is unlikely to end well.

For the Nurseries and childcare facilities, like most operational commercial property, the qualifying items are often hidden behind the walls or under floorboards or above suspended ceilings. In addition, we claim for items associated with bathrooms, kitchens, flooring, cabling, plumbing, heating, fire doors etc.

Why claim Embedded Capital Allowances?

The government has actively encouraged businesses to claim Embedded Capital Allowances with initiatives that sit under the 2001 Capital Allowance act such as the 130% Super Deduction and Annual Investment Allowances. The introduction of ECA has provided business owners a greater incentive to encourage commercial property owners to claim for these items.

Since our inception, we have successfully made over 5,500 claims with a flawless, 100% approval rate from HMRC. So, if for some reason you were the first client to have their claim questioned by the revenue, then you’ll have the collective experience of our expert Tax Specialists that will make sure you receive the tax relief that you are entitled to.

At HMA Tax, our expert team, and data from thousands of previous claims helps inform and structure our claims, meaning that we can add significant value where information is missing or difficult to obtain.

As a highly accomplished and award-winning team qualified team in tax and surveying experts, we regularly identify, value and claim Embedded Capital Allowances at a national scale, making HMA Tax the market leader in Embedded Capital Allowance claims.

If you own a commercial property and would like to find out more about how you could improve your overall tax position, please call Andy Milnes, Senior Claims Specialist on 01384 904090 or email for more information.