Accountants referred the case of a client’s extensive office refurbishment and extension project to Six Forward. The developments were part of a respected investment management and funding services provider’s expansion plans and were key to its growth objectives.
The capital expenditure spanned four financial periods and involved Structures and Buildings Allowance (SBA) considerations. The extended and refurbished building provides a reception, open plan offices and private offices. There are also meeting and conference rooms, as well as kitchen and WC facilities. The newly created basement beneath the original building houses a plant room and staff amenity areas. The claim also included: gas-fired heating, air conditioning and ventilation, solar shading, floors finishes, security (including CCTV and door monitoring) and fire systems. Television installation, and telephone and data networks are featured, as well as all electrical and cold and hot water systems, and furniture and fittings.
Six Forward was engaged because of the complexity of the work undertaken and because information was inadequately supported by detailed invoices and a schedule of works .
The project included some very significant and bespoke construction work, including extensive groundwork to create a new basement area. There was also the connected extension to the rear of the building, which imposed specific demands. As a result of this, careful consideration was required to ensure correct allocation of professional fees in relation to each aspect of the build.
In the absence of a detailed schedule of works from the main contractor, in addition to other sub-contractor works that were carried out in parallel, reliance had to be placed on a first principles approach, with emphasis on builders’ guides and other resources to adequately allocate each item of plant and machinery to the appropriate capital allowances pool. As always, a significant contribution to the overall process was made by the thorough survey of the building post-completion.
RELEVANT LEGISLATION FOR THIS CASE.
CAPITAL ALLOWANCES ACT 2001 S11, S15, S33A, S176, S270AA
WHAT WAS THE OUTCOME?
