Case studies accommodation

A Hotel situated in Cumbria was purchased in 2014 for £969,583. A subsequent Capital Allowances report created by Catax Solutions found that the owner could claim £237,103 in Capital Allowances.

• Lift installations
• Protective installations

Catax was instructed in March 2016 to carry out an audit and subsequent analysis for Capital Allowances of the construction expenditure of a Furnished Holiday Let based in Filey. The construction work formed comprised of a conversion of an existing public house to create four two-storey Furnished Holiday Lets. After investigation, Catax identified £106,346 of Capital Allowances.

Claimable Items:

• Fixed internal fittings
• Mechanical installations
• Electrical installations

We instructed Catax to investigate the Capital Allowances opportunity in our property prior to exit in September 2014.
As a Limited Partnership with both UK on-shore and off-shore investors, the investment had a complex ownership structure. Despite this, Catax was able to provide us with a tailor-made solution that successfully secured a significant tax benefit through unclaimed Capital Allowances.

The Catax team kept us up-to-date at each stage of the transaction and on completion of the process, each beneficiary received a detailed breakdown of their Capital Allowances benefit dependent upon their personal circumstances. The exercise resulted in higher rate tax payers benefitting from £9,174 in Capital Allowances per £25,000 tranche invested in the deal.

Highly knowledgeable in this niche area of tax, the Catax team were proactive in addressing all our queries from the instruction stage through to receiving our initial benefit analysis. The process was executed with precision and in line with our expectations.

As a result of this exercise our investors received an initial substantial benefit and have continued to feel the positive effects of on-going reduced tax liabilities.

Catax are now our appointed Capital Allowances adviser for all retrospective and current year claims within our portfolio. They have also been instructed to provide advice in connection with all commercial property acquisitions and disposals. As such, we would recommend Catax to any commercial property owner due to their experienced team, streamlined process and the significant claims they are able to identify.