Factory in Manchester

A modern factory was purchased in Manchester for £2m in 2022. HMA Tax's expert team identified £300,000 in unclaimed Capital Allowances.

Capital Allowance claim for an expansive factory in Manchester

The Property

A manufacturing company contacted HMA Tax after acquiring a factory in Manchester for £2m. The site was equipped with cutting-edge machinery, but the company had also planned significant refurbishments to enhance efficiency.

The owner was aware of the potential for tax relief but needed guidance in navigating the complexities of the Capital Allowances, particularly concerning Annual Investment Allowances (AIAs) and Full Expensing.

Our Approach

Our team at HMA Tax embarked on a thorough examination of the factory’s existing assets and the planned improvements.

  1. Annual Investment Allowances (AIAs): We recognised the opportunities to utilise AIAs to maximise tax savings on plant and machinery expenditures. By focusing on the eligibility of the existing and new machinery, our team identified qualifying expenditures that would enable the owner to reduce their tax bill.
  2. Full Expensing: With the introduction of Full Expensing, which allows for 100% first-year relief on qualifying new main rate plant and machinery investments, we assessed the planned investments to ensure they met the criteria. We provided clear guidance on how to take advantage of this relief, resulting in significant savings.
  3. Integration of AIAs and Full Expensing: By combining insights into both AIAs and Full Expensing, we developed a comprehensive strategy that aligned with the owner’s investments in the factory. This strategy maximised the available Capital Allowances, and our team identified £300,000 of unclaimed capital allowances.

We provided a detailed report outlining our findings and worked closely with the owner’s accountants to ensure all the necessary documentation was prepared. Our team liaised with HMRC to secure the tax savings, resulting in a streamlined process for the owner.

Thanks to HMA Tax’s expertise and tailored approach, the factory owner was able to claim £300,000 in unclaimed Capital Allowances. This significant tax saving will contribute to the company’s ongoing growth and success in the manufacturing industry, and ensure that the factory in Manchester continues to thrive.