Manufacturing Facility in Birmingham

A manufacturing facility in the industrial hub of Birmingham underwent a meticulous evaluation by HMA Tax. Our comprehensive review uncovered substantial unclaimed Capital Allowances, delivering notable tax relief for the property owner.

Capital Allowance claim for an efficient Manufacturing Facility in Birmingham.

The Property

In 2020, a national manufacturer engaged HMA Tax to assess a manufacturing facility in Birmingham, acquired for Β£4 million. The facility had undergone significant upgrades to optimise production capabilities, and while the owner’s accountant had initiated some claims, uncertainties persisted about the full utilisation of available Capital Allowances.

Annual Investment Allowances (AIAs):

We ensured that the manufacturing facility owner harnessed the potential of Annual Investment Allowances (AIAs). This strategic measure allowed the owner to significantly reduce their tax liability, enabling them to reinvest saved funds into enhancing production capabilities or other growth-focused initiatives.

Fit Outs & Refurbishments:

The manufacturing facility’s extensive upgrades presented a golden opportunity to capitalise on Capital Allowances. By claiming allowances on the investment in plant and machinery, the owner benefited from substantial tax relief. Our seasoned team at HMA Tax meticulously examined available allowances, incorporating AIAs, Super-Deduction, WDAs, and SBAs to optimize the owner’s tax savings.

Our Approach

HMA Tax enthusiastically accepted the challenge of identifying untapped Capital Allowances for the manufacturing facility owner. Our team meticulously examined the renovation expenses, leading to the identification of Β£600,000 in unclaimed Capital Allowances, representing 15% of the property’s purchase price.

Leveraging our profound knowledge of Capital Allowances, we presented a detailed report outlining eligible assets and their associated values for potential claims. Collaborating closely with the property owner’s accountants, we ensured the tax savings were maximised through seamless liaison with HMRC.

Thanks to the specialized expertise of HMA Tax, the manufacturing facility owner achieved substantial tax savings by claiming Β£600,000 in unclaimed allowances. The resultant tax relief amounted to an impressive Β£120,000.