Capital allowance review resulted in £94,000 tax refund

The brief

A third party multi-temperature  warehousing and logistics business purchased a building for £5.7 million in 2005. Their advisors at the time were a big four firm who did not actively pursue any capital allowances claim for the client so in 2008 A capital allowances review was undertaken by another mid-tier firm.

Our role

Tax Partner, Melanie Orriss took over the tax affairs of the client in 2008 and agreed to review the capital allowances affairs on a fully contingent basis.  From that we identified an additional £800k of capital allowances resulting in an immediate tax refund of £94k and future tax savings of up to £115k (dependent on future tax rates).

Feedback

"When Melanie first suggested taking a look at our capital allowances, on a fully contingent basis, I felt that I had nothing to lose.  However, I was a little sceptical about what value would be added as this area had already been looked at by two previous advisors. I was delighted by the result and the cash refunds that we received from HMRC have made a real difference to our business.  It is clear that the Baker Tilly approach in this area is different to that adopted by many of their competitors and the results speak for themselves.  The process was hassle free and by no means time consuming or disruptive and I found the team to be very professional in their approach.  I would recommend allowing Baker Tilly to take a look at your opportunities for tax relief, even if you think your advisor has it covered."
Aidan Hughes, Financial Director, Norish Plc