Hoteliers of the UK – have you heard of Capital Allowances?
Capital Allowances are a High Value/Low (No) Risk way of realising a short-term cash injection or medium-term tax benefit for your hotel. They allow hotels to reduce its profits using capital allowances. These allowances are granted for items that are used by the business but embedded within the fabric of the building itself.
Imagine you are picking your hotel up, lifting off the roof, turning it over, and giving it a shake. Pretty much anything that doesn’t full out will have a Capital Allowances attached to it. These can give rise to a tax refund in as little time as 12 weeks or a relief to use against future tax bills.
The kind of things we are talking about are signage, spa equipment, security systems and alarms, CCTV, fire suppression systems, wiring, hot and cold water systems, bar equipment, and air conditioning. The list isn’t endless but it is long and distinguished.
A successful claim relies on expertise in surveying and presenting the claim to HMRC. Which is where we come in.
What can the benefit look like?
Using industry average figures, if your hotel is worth £750,000 then it would contain circa £262,500 in un-used embedded capital allowances. If you operate through a Limited Company you would qualify for a refund or relief at your marginal tax rate of 19% giving you a benefit of £49,875!
We offer an end-to-end service from initial briefing, to survey to claim. We only charge if we find allowances for you and we commit to only ever leave you in a cash positive position.
How do you get started?
Just contact us however you feel most comfortable and we will be in touch to get the ball rolling.