Aesthetics Salon in Edgbaston

An aesthetics salon in Edgbaston was purchased for Β£500,000 in 2020. Our team conducted a comprehensive review of the property and discovered Β£100,000 in unclaimed Capital Allowances.

Capital Allowance claim for a modern Aesthetics Salon in Edgbaston

The Property

In 2020, a local investor expanded and sought to acquire an aesthetics salon in Edgbaston and engaged HMA Tax to delve into the Capital Allowances potential of the property. Acquired for Β£500,000, the salon underwent renovations to create a contemporary space for beauty and wellness treatments.

S198/199 Elections:

Our intervention at the point of sale was critical for this claim, as an incorrect handling of Capital Allowances in the S198/S199 context could have result in a total forfeiture of the allowances for the investor.

Fit Outs & Refurbishments:

The salon’s considered upgrades presented a unique opportunity to capitalise on Capital Allowances. By claiming Allowances on the investment in furnishings, fixtures, and other aesthetic treatment facilities, the owner benefitted from substantial tax relief.

Our Approach

Our team began identifying unclaimed Capital Allowances within the salon’s capital expenditures. Despite the renovations having been completed, our tax advisors recognised the nuances of the beauty industry and combed through the costs.

Our analysis revealed Β£100,000 in unclaimed allowances, spanning the salon’s modern fixtures, specialised equipment, and other eligible assets. This translated to a substantial tax saving of over Β£20,000. Beyond financial benefits, the salon enhanced its competitive edge by reinvesting the savings into further upgrades, offering clients an even more sophisticated experience.