Case Study 1 - Healthcare

Client acquired a care home four years earlier. Contract apportioned as follows:
Freehold land and buildings £500,000
Goodwill £100,000
Chattels and loose fixtures and fittings £100,000
The client's accountant had already claimed for the £100,000 of chattels. The client wished to explore the opportunity to claim the capital allowances on the fixed machinery or plant within the freehold land and buildings apportionment.
Initial report and proposal produced detailing issues to be considered, estimate of capital allowances, net tax saving and our professional fees. Following appointment £100,000 of capital allowances were identified from our site visit and detailed analysis.
£10,000 First year net tax saving
at 40% higher rate income tax
£40,000 Total lifetime net tax saving
at 40% higher rate income tax

Our professional fees less than 50%
of first year tax saving