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< Case Studies East Dean Kennel, Cattery & Groomers

Background

East Dean Kennels & Cattery is situated in seven acres of beautiful Kent countryside between Maidstone and Ashford.

The site houses a heated kennel and cattery block containing sixty-seven dog pens and fifteen cat pens (each with own outdoor garden), as well as a grooming room, kitchen, pet food store and other facilities. There is also a rubber matted play barn and a paved winter paddock.

The property was purchased in 2009 for £799,000



£233,094

Capital allowances uncovered

£97,800

Unlocked in total tax savings

£8,000

Cash rebate (after fees)

What owner
Mrs Holson said . . .


“When I was first contacted I was highly sceptical and in all honesty rather disinterested in the information discussed. However, through their perseverance with me, they finally highlighted the tax savings available for current and future tax liabilities. They made the whole process very understandable and handled the initial concerns I had professionally. I am forever grateful for the tax savings achieved for me, as not only was I not aware of the substantial savings but the tax relief couldn't have come at a better time. Having to furlough staff and strip back the business model in order to increase the survivability of the business means uncertain times ahead, however a large cash rebate and even larger tax savings for future years has decreased that concern greatly.''

Overview of the claim

Mrs Holson was initially skeptical after a telephone but was interested to learn more about capital allowances and the potential to reclaim thousands back in overpaid tax. Our team prepared a detailed proposal outlining the benefits, and upon seeing the potential tax savings available, Mrs Holson gave the green light to proceed.

Making a claim on a kennel or cattery can be extremely complex because there are complicated relief structures in place. It is difficult to determine if a kennel/cattery business property is deemed to be ‘plant’ or ‘structure’ in accounting terms. As specialists in capital allowances our in-house qualified surveyors are able to determine whether or not a building would meet the requirements.

Qualifying items

The technical survey identified that the property had qualifying expenditure acquired with the purchase of the building that included electrical, heating, water and ventilation systems, kitchen fixtures, toilet facilities, disposal installations, ironmongery, fire and lighting protection, security systems and telecommunications.

In less than three weeks after submission to HMRC the owner received a substantial cash tax repayment of almost £20k. In addition a saving of more than £5k was achieved on an upcoming tax payment for 2019/20.