Background
Londis is a local, independently owned corner shop belonging to a nationwide convenience store group. Located in the centre of Newport City, Londis provides a wide range of everyday wholesale essentials to the surrounding community. Since completing the Capital Allowances claim in December 2018, the owner has since sold the property.
£34,000
Capital allowances uncovered
£14,000
Unlocked in total tax savings
£207,000
Purchase Price
What owner Mr Singh said . . .
“Had I listened to my accountant, I would have lost out on £30,000 in tax relief! I was so happy with the service and utmost professionalism of Zeal that I have recommended them to many more owners.
Overview of the claim
After being recommended by a friend who had previously made a successful claim, Londis owner Mr Singh conferred with his accountant to discuss the potential scope for a capital allowances claim.
Although his accountant was not initially receptive due to his limited understanding of embedded capital allowances claims, Mr Singh chose to take the advice from his friend knowing he had nothing to lose and potentially thousands to gain. After supplying a copy of his latest tax return, an experienced surveyor visited the property to evaluate the site.
Qualifying items
Qualifying expenditure acquired with the purchase of the property included electrical, heating, water and ventilation systems, kitchen fixtures, toilet facilities, disposal and sanitary installations, ironmongery, fire and lighting protection and telecommunications. As there had been no previous claim for capital allowances, a claim could be made for the full entitlement of fixtures acquired with the property.
Result
Claims for retail units can be complex as many stores/shops also carry residential flats within the commercial building. Residential flats do not qualify for this type of tax relief. Zeal identified £34,000 in qualifying capital allowances within Londis, resulting in tax savings of almost £14,000! As the owner and his accountant were unaware of this tax relief, the claim could have remained hidden without the assistance of Zeal.