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Ashton & Carrington
Capital Allowances · Industrial

£123,480 of allowances, in the emptiest building we survey.

Warehouses are the most plant-light buildings in commercial property. This one still produced a six-figure claim.

£123,480
Qualifying plant & machinery
14.0%
Share of purchase price
up to £55,566
Potential tax saved

The engagement

A logistics operator bought a freehold distribution unit with integral offices for £850,000. The purchase had been treated entirely as property; we valued the embedded plant within it: high-bay lighting, heating and destratification, sprinklers, dock levellers and security.

Our approach

  • Desktop analysis plus a single site survey
  • Reconstruction costs from BCIS (RICS) and Spon's data; land value to VOA benchmarks
  • Apportioned to HMRC's formula under CAA 2001 s.562
  • Filing-ready report with statutory basis and pool allocation

The result

Main rate pool
£28,400
Special rate pool
£95,080
Total qualifying plant & machinery
£123,480

HMRC's apportionment formula

Q = P × A ÷ (B + C)

Q qualifying expenditure · P purchase expenditure · A reconstruction value of plant · B reconstruction value of building · C bare site value.

What that's worth in tax

Company, Corporation Tax at 25%
£30,870
Individual, higher rate 40%
£49,392
Individual, additional rate 45%
£55,566

Relief is given through writing-down allowances over time; where the Annual Investment Allowance or full expensing applies, much of the benefit can land in year one.

A real client engagement, anonymised to protect confidentiality. Figures do not constitute tax advice; outcomes depend on individual circumstances.

Fourteen percent is our most modest result, and it was still £123,000.

More outcomes

Related case studies.

Real client engagements, anonymised to protect confidentiality. Figures do not constitute tax advice; outcomes depend on individual circumstances.

Sheraz Ghrew

Sheraz Ghrew, Partner

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