Office in Birmingham

A bustling office building was acquired for Β£5m in Birmingham in 2021. Our skilled team at HMA Tax meticulously reviewed the property and unearthed Β£1.3m in unclaimed Capital Allowances.

Capital Allowance claim for a contemporary office complex in Birmingham

The Property

In 2021, a commercial property investor reached out to HMA Tax with an office complex in Birmingham. The investor had acquired the site for Β£5m, seeking to make significant renovations to modernise the building and create a more engaging work environment.

They were aware that Capital Allowances might be available but were unsure about the complexities and how they could relate to their investment, particularly in terms of the Annual Investment Allowances (AIAs) and the legal implications associated with S198/199 Considerations.

Our Approach

HMA Tax embraced the challenge, working closely with the office complex owner to achieve the maximum potential savings.

  1. Annual Investment Allowances (AIAs): We identified the opportunities for AIAs that were relevant to the investor’s renovation plans. This involved a detailed review of the assets and planned expenditures, particularly focusing on new and unused plant and machinery that could be eligible for AIAs.
  1. S198/199 Considerations: Since the property was newly acquired, we engaged our expertise in S198 considerations to ensure that the investor was fully aware of the tax implications related to the purchase. Our specialists worked to guarantee that the Capital Allowance implications on fixtures and fittings were accurately handled, collaborating with Commercial Property Solicitors as necessary.
  1. Integrated Strategy: By aligning the AIAs and S198/199 considerations, we tailored a robust strategy that maximised the available Capital Allowances for the investor. We identified Β£1.3m of unclaimed capital allowances, providing a comprehensive report that included a list of qualifying assets and the values that could be claimed.

Our team collaborated with the owner’s accountants, preparing all necessary documentation and liaising with HMRC to secure the tax savings. We offered ongoing support to ensure a smooth and efficient process.

Thanks to HMA Tax’s in-depth knowledge and tailored approach, the office complex owner was able to claim Β£1.3m in unclaimed Capital Allowances, leading to substantial tax savings. The investor now has a modernised and vibrant office space in Birmingham, empowered by the financial benefits achieved through our expert assistance.