Our client had undertaken a number of refurbishment and expansion projects from 2005 to 2007.
Due to a perceived lack of information, very limited capital allowances had been identified by the previous accountants.
IMH Advisory LLP reviewed the previously submitted, closed tax computations and floor plans of the works. We surveyed each site, confirming the nature of the works and ensured that the relevant items still existed at each dealership. By applying our surveying skills and making appropriate assessments, we could break down the expenditure previously overlooked.
Our detailed, fully disclosed and reconciled analysis identified almost £1m of additional Plant and Machinery Allowances (PMA) and Capitalised Revenue Expenditure (CRE). Working with the current tax advisor, the additional PMA and CRE was included in an open tax return and submitted to HMRC, leading to tax savings of circa £200,000.