Our client had recently completed a fit out of a flagship West End store. It had employed two contractors, one of which had provided only lump sums for the completed work. The clients’ tax advisor approached us due to the lack of detailed information.
We surveyed the site and confirmed the nature of the works. By applying our surveying skills and making measured assessments, we segregated the lump sum expenditure.
Our fully disclosed and reconciled analysis identified that circa 70% of the expenditure would qualify for a tax deduction. This mainly related to Plant and Machinery Allowances (PMA) and Capitalised Revenue Expenditure (CRE).
In addition, we also identified energy efficient plant that qualifies for 100% Enhanced Capital Allowances (ECA) and asbestos removal which qualifies for 150% Land Remediation Relief (LRR).