Background
Genus Care Ltd operate several children’s homes across Wales and offer residential childcare services to children and young people aged 7- 20.
£602,250
Capital allowances uncovered
£82,000
Unlocked in total tax savings
£7,550
Cash Rebate
What co-owner Gareth Hemming said . . .
“Our experience with Zeal was perfect... from the initial contact which was polite, informative and certainly not pushy to the cooperative and friendly manner they interacted and worked alongside our accountants, to setting up site visits and, finally, the outcome which saved us a considerable amount of money both now and in the future.”
Overview of the claim
Following discussions with the owners, Zeal began initial investigations to identify if there was unclaimed tax relief within the Genus Care multi-property portfolio.
Our team identified scope to claim ‘embedded fixtures’ tax relief on the purchase of seven properties, and the extension of one. An opportunity for Structures & Buildings Allowances (SBAs) tax relief on the expenditure incurred for a property extension and refurbishment was also uncovered.
About the claim
Shortly after receiving our comprehensive proposal outlining the estimated tax benefit available to them, the owners instructed Zeal to proceed with the next steps of the claiming process, which was a technical survey of each qualifying property. Although detailed cost breakdowns of the development work completed on the one property was unavailable, our team was still able to assess qualifying costs using specialist valuation practices alongside a technical capital allowances site survey.
The result
Of the £2.57m total expenditure incurred, more than £600k in previously unclaimed capital allowances was uncovered by Zeal’s tax specialists. This will generate up to £150,550 in corporation tax savings for Genus Care. By making the claim in the earliest amendable tax return, our team reduced the company taxable profits by 65% in addition to applying available savings in their latest tax year. As a result, an immediate tax repayment of over £7.5k (after fee) was refunded from HMRC. Alongside this, SBAs identified of £82,000 will provide further corporation tax savings of up to £615 each year, during their ownership of the property. A great outcome all round!