Hotel Redevelopment in Oxford

A hotel redevelopment property was purchased for Β£8m in 2021. Our team conducted a review of the property and discovered 2.4m in unclaimed Capital Allowances.

Capital Allowance claim for a historic Hotel Redevelopment in Oxford

The Property

A historic building, dating back to the 19th century, caught the attention of a forward-thinking developer in Oxford. The property, purchased for Β£8 million, underwent a transformation into a hotel that blended modern luxury with historical charm.

Annual Investment Allowances (AIAs):

Our tax experts navigated the role of Annual Investment Allowances (AIAs) to ensure the client fully harnessed the available tax relief. By optimising the claim process and considering the property’s eligibility for AIAs, we successfully identified Β£2.4 million in unclaimed Capital Allowances.

Our Approach

Β Our team conducted an exhaustive review of the property’s purchase details and the extensive renovation costs. Despite previous claims made by the owner’s accountant, our analysis revealed a significant portion of unclaimed Capital Allowances.

Identifying Β£2.4 million in unclaimed allowances (30% of the purchase price), our team compiled a comprehensive report outlining eligible assets and their corresponding values. Collaborating closely with the owner’s financial advisors, we facilitated the seamless integration of our findings into their overall tax strategy.

Through our tailored approach, the hotel developer achieved a remarkable tax saving of over Β£480,000, unlocking the full potential of their investment.

This case study underscores the critical role of Annual Investment Allowances (AIAs) within the UK tax system, especially in the context of hotel redevelopments. By leveraging HMA Tax’s expertise, the client not only identified and claimed all eligible assets but also maximised the benefits of AIAs, resulting in substantial tax savings.