Curtis Plumstone Ltd, Wellesley House, 204 London Road, Waterlooville, Hants. P07 7AN T: 0239 2696815 E: info@curtisplumstone.com W: www.curtisplumstone.com

Company No. 8420337 VAT No. 134604044

Capital Allowances Claims – Case Studies

The following are examples of some the capital allowances work undertaken by Curtis Plumstone

Associates. Capital Allowances Specialists can maximise tax relief in respect of commercial property

expenditure on second had purchases, new-builds and re-developments.

Case Study 1 – Care / Nursing Homes

“Not all claims are straight forward and it is therefore important to engage a capital allowances claims

company which knows how to correctly interpret the complexities of the legislation and maximise the

tax benefits”

Case Study 2 - Hotel

“We are often asked the same questions by accountants who believe there are drawbacks to making

a capital allowances claim but these are normally due to misconceptions which endure within the

accounting profession”

This nursing home, located in West Yorkshire, is owned by

a limited company. We were contacted by the company’s

accountant and were awarded the contract based on our

experience in capital allowances claims on nursing and care

homes as well as our competitive pricing. The end result

was the identification of £365k of previously unclaimed

capital allowances. At a corporation tax rate of 20% this

produces an overall potential tax benefit of circa £73k.

One of the Directors of the company which owns the nursing

home above also owns a care home in Cumbria as part of a

partnership. This was a slightly more complex claim as there

was evidence that a previous owner had claimed capital

allowances. However this did not preclude a claim but did

restrict it to an extent. Despite this capital allowances were able

to be claimed of £212k and with the partners being subject to

tax at 40% this produces a tax saving over time of circa £85k.

This beautiful Cotswolds Hotel was originally an 18th

Century Coaching Inn and retains a lot of the character

from this period. We were delighted to be awarded the

capital allowances claims contract after speaking at length

with the owner’s accountant. The end result was the

identification of circa £337k in previously unidentified

capital allowances which for the owners, on a 40% tax rate,

means an overall tax benefit of circa £134k.

Curtis Plumstone Ltd, Wellesley House, 204 London Road, Waterlooville, Hants. P07 7AN T: 0239 2696815 E: info@curtisplumstone.com W: www.curtisplumstone.com

Company No. 8420337 VAT No. 134604044

Case Study 3 - Mixed Use Property

“The property owner was delighted. His accountant rated our work as excellent and confirmed our

fees were much lower than other capital allowances claims providers he had contacted.”

Case Study 4 - Offices

“This business was won in competition with at least five other capital allowances claims companies”

Case Study 5 - Guest House

We were contacted by the property owner’s accountant who

wanted an initial high level capital allowances review for his

client. The property, purchased at a cost £1.25m, is a mixed use

property in Birmingham with retail units on the ground floor

and a language school on the floors above. When our work was

completed £302k worth of capital allowances had been

identified and as the owner was a 40% income tax payer this

translated into an income tax saving over time of £121,000.

There was an almost immediate income tax saving of £27k.

A national organisation with seven offices spread across the

UK. The value of the portfolio was in excess of £4m. We

were able to identify £550k worth of capital allowances. This

equates to a total tax saving over time, at 20% corporation

tax, of £110k. We were slightly disappointed by the result, in

this case caused by the high cost of their London Office

where it is not uncommon for the price of the land to make

up 40% to 50% of the overall purchase value of the

property. The significance of is it reduces the percentage to

be attributed to plant & machinery (p&m) attracting the

capital allowances. The client, however, was delighted!

This Guest House in Whitby was purchased for £422k in

2012. The original purchase contract listed "fixtures" valued

at £15k. However when we came to undertake our detailed

capital allowances survey and analysis of the property we

discovered a further £110k in unclaimed capital allowances.

The owners, who are 40% tax payers, will benefit from tax

savings over time of circa £44k. One owner was so impressed

with the results that he is also now helping us to promote our

capital allowances claims services in the Whitby area.