Hotel in London

A luxurious hotel was purchased for Β£4m in 2022. Our team at conducted an extensive review of the property, identifying Β£1.6m in unclaimed Capital Allowances.

Capital Allowance claim for a luxurious hotel in London

The Property

In 2022, a well-known hotelier approached HMA Tax with a luxurious hotel. The owner had acquired the property for Β£4m, with plans to extensively renovate and modernise the facilities.

The renovation involved significant investments in plant and machinery, as well as interior improvements to enhance the guest experience. Though the owner had claimed some costs, they were unsure if all available Capital Allowances, including Annual Investment Allowances (AIAs), had been maximised.

Our Approach

Understanding the hotel’s eligibility for both Full Expensing and AIAs, HMA Tax took on the task of identifying any unclaimed Capital Allowances. Our team conducted a detailed review of the costs incurred, focusing on plant and machinery expenditures and new investments that qualified under the Full Expensing scheme, introduced to boost business investment.

We identified Β£1.6m of unclaimed capital allowances, including valuable AIAs. By taking into account the specific circumstances and the latest legislation, we provided a detailed report highlighting our findings.

Once we identified the unclaimed capital allowances, we worked closely with the owner’s accountants to ensure the maximum tax savings. Our understanding of the newly introduced Full Expensing and AIAs allowed us to provide support throughout the process, from preparing the necessary documentation to liaising with HMRC to secure the tax savings.

Thanks to HMA Tax’s expertise, the hotel owner was able to claim Β£1.6m in unclaimed capital allowances, resulting in a tax saving of over Β£400,000. The owner appreciated our knowledge of Full Expensing and AIAs, acknowledging that our specialist insight allowed them to significantly cut their tax bill and reinvest in their business.