Background
The Craigdarroch Inn is a family owned, traditional Highland lodge overlooking Loch Ness in Scotland. The guest house contains eight ensuite rooms on the first floor and a further five on the second floor which offer spectacular views of the magnificent forests and the sparkling loch. It also contains a restaurant and kitchen, bar area, reception, office and toilet facilities. The property was purchased for £500,000 in 2007.
£500,000
Purchase price
£170,000
Capital allowances uncovered
£49,000
Unlocked in total tax savings
What owner Mr Donnelly said . . .
“We’ve run our hotel for over 12 years and had never heard of this tax relief before speaking to Zeal. Their team knew exactly what they were doing! It’s hard to believe my property was hiding so much tax savings and a cash rebate as well! My tax for this year was wiped out and I don’t have to worry about my next bill either.”
Overview of the claim
The owners of Craigdarroch Inn had no idea they were entitled to claim tax relief on approximately a third of the price they paid to purchase their property until speaking with Zeal. Upon hearing the benefits, they were happy to proceed so they could take advantage of the tax savings and repayments due to them from HMRC.
Qualifying items
A technical site survey was conducted to identify the maximum value of eligible embedded fixtures within the building. A total of £170k was uncovered in capital allowances which will generate almost £50,000 in tax savings for the owners over the coming years. Furthermore, the owners’ payments on account for the current and next year were completely eliminated and they also received a cash tax repayment for overpaid tax from HMRC.