Turning a £1m Deal into £17k in Tax Savings

A broker reached out for assistance with a client’s commercial case. The client needed a commercial mortgage to purchase an office premises to trade from.

During the process from application through to completion, our Specialist Services team reached out to the client to assess whether they could be eligible to claim Embedded Capital Allowances on the property involved in the deal. We also wanted to ensure that the purchase agreement contained the relevant terms, which would allow the client to claim in the future. After our initial conversation with the client, we referred them to our tax partners, HMA for a free initial conversation. HMA assessed the client’s position, and ensured terms on the purchase agreement were rectified to allow the clients to claim in the future.

The client purchased the property for circa £1m and spent a further £45,000 on renovating the office space. A year later, our Embedded Capital Allowances partner, HMA, successfully saved the client £17,000 in corporation tax. This came after they highlighted around £70,000 in capital allowances within the property. The broker involved in the deal was pleased to have received £100 for the referral.