Retail Complex in Edinburgh

A bustling retail complex in Edinburgh was purchased for Β£6m in 2021. HMA Tax's comprehensive assessment led to the discovery of Β£1.2m in unclaimed Capital Allowances.

Capital Allowance claim for a vibrant retail complex in Edinburgh

The Property

In 2021, a commercial property investor approached HMA Tax with a newly acquired retail complex in Edinburgh. The property was bought for Β£6m, and it housed a variety of retail shops, eateries, and service providers.

The investor had initiated significant refurbishments to enhance the overall shopping experience, but was unsure about the opportunities to claim back on their investment using Annual Investment Allowances (AIAs) and the potential benefits from Full Expensing.

Our Approach

HMA Tax understood the dynamic nature of the retail sector and the potential for unclaimed Capital Allowances. The approach was twofold, focusing on both the AIAs and Full Expensing.

Firstly, our team meticulously reviewed the refurbishment expenditures, identifying opportunities to claim AIAs. This included an analysis of qualifying plant and machinery investments, ensuring compliance with AIA rules such as the assets being new and unused.

Simultaneously, we evaluated the potential for Full Expensing, an incentive allowing for 100% first-year relief on qualifying investments. Since the retail complex was invested in during the applicable period for Full Expensing, the client was eligible for this substantial relief.

The dual approach enabled us to identify Β£1.2m of unclaimed capital allowances, providing a detailed report to the investor. We worked hand in hand with the client’s financial team to prepare the necessary documentation and liaise with HMRC, ensuring a seamless claim process.

Thanks to HMA Tax’s industry expertise and thorough understanding of both AIAs and Full Expensing, the retail complex owner was able to claim Β£1.2m in unclaimed Capital Allowances. This resulted in significant tax savings, strengthening the investor’s financial position and future growth prospects.