A family-owned independent seaside hotel undertook a major ground floor refurbishment.
With 48 en-suite guest rooms, the hotel has a reception, bar, restaurant, and dining area, three function suites, and a library. The basement features a laundry room, beer cellar, workshop, and storage. Apart from general and emergency lighting, and electrical installations expected of a hotel, there is a three-phase supply for high-load requirements, fire and security alarms, door entry controls, CCTV monitoring, audio visual equipment, telecommunications and data systems. There are also passenger and goods lifts.
WHY DID SIX FORWARD GET INVOLVED?
The client’s accountants had estimated a CAs claim to meet an urgent tax filing deadline. They knew that there was probably more value in CAs and tax relief to extract
and referred the client to Six Forward. We reviewed the first valuation, then formulated the total claim from the ground up to maximise the client’s tax relief for the capital expenditure over two reporting periods.
HOW DID WE HELP?
The claim value was maximised with full compliance ensured. The accountant’s initial pre-filing claim of £770,00 rose to £1.03m (not including Structures & Buildings Allowances – SBA) through our approach. The claim also heavily favoured fixtures in the main rate pool to ensure the client received a faster rate of write down.
RELEVANT LEGISLATION FOR THIS CASE
CAPITAL ALLOWANCES ACT 2001 S11, S15, S33A, S176 & S270AA (SBA).
WHAT WAS THE OUTCOME?
Analysed expenditure of £1.03m was allocated as follows:
