Talking Tax: December 2022
Author: Matt Jeffery, Managing Director
Last month our team assisted 27 different clients to identify claims for capital allowances, unlocking over £2.6m in unclaimed tax relief. This will result in cash tax savings for our clients of at least £520,000!
Below is a summary of some of the cases we worked on:
Purchase & Refurbishment of Holiday lets in the South West
Our client purchased two residential properties that were converted to holiday lets. Almost £700k was spent to acquire the properties and carry out refurbishment work between 2017 and 2020. No tax relief had been claimed on the capital expenditure.
Identified £187,632 as qualifying for capital allowances.
Total income tax savings £75,052 (higher rate taxpayers)
Cash repayment £25,889
Purchase of a Caravan Park in Lincolnshire
Through our membership with the British Holiday & Home Park Association (BH&HPA), we were contacted by a caravan park owner in Lincolnshire. They had become aware of the opportunity to save tax by claiming capital allowances on their park which they had purchased in 2011. Zeal were able to quickly identify that the site qualified for a capital allowances claim and arranged for one of our surveyors to visit the site. Within 10 days of the first contact from the client, we submitted the claim to HMRC.
Identified £197,831 as qualifying for capital allowances.
Total income tax & NI savings £83,089
Cash repayment £14,692
Refurbishment of a Cinema
Our team was contacted by an accountancy firm we frequently work with to provide advice on the refurbishment of a cinema room for a charity. Several grants had been received towards the refurbishment works so they were unsure how to treat them for tax purposes and if there would be an impact on any capital allowances claim. Zeal reviewed all the grant paperwork and refurbishment costs and produced a report that analysed the costs and allocated the grant income appropriately.
Identified £110,346 as qualifying for capital allowances (net of grant income).
Total corporation tax savings £20,965
Purchase of Children’s Nursery in Sheffield
Our client incurred £339,000 to purchase a Nursery building in 2006.
Identified £65,139 as qualifying for capital allowances.
Total income tax & NI savings £18,890
Cash repayment £3,405
Purchase of an Osteopathic Clinic in Hampshire
Our client incurred £288,750 to purchase a building for use as a clinic in 2010. The property is let to the clients limited company. The claim for tax relief was made against the rental income received by our client.
Identified £63,583 as qualifying for capital allowances.
Total income tax savings £12,716
Merry Christmas from Team Zeal!
2022 has been a prosperous year for Zeal, and that’s all thanks to our hardworking team. This year we have successfully unlocked almost £50m in unclaimed allowances for our clients, generating millions in tax savings and cash rebates. In these recent difficult economic times, this has proved to be a lifeline to many businesses.
As the year draws to a close, we look forward to helping even more business owners in 2023 and will be rearing to go in January to help clients reduce their upcoming tax payments.
Our offices will be closed from Thursday 22nd December for the Christmas period and will re-open business as usual on Tuesday 3rd January.
From all the team at Zeal, we’d like to wish you a Merry Christmas and a Happy New Year!