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Ashton & Carrington
Capital Allowances · Retail

£81,375 of allowances, hidden behind the shopfront.

How a high-street retail purchase produced a five-figure claim, from the air conditioning above the door to the shutters at night.

£81,375
Qualifying plant & machinery
25.0%
Share of purchase price
up to £36,619
Potential tax saved

The engagement

Our client bought a freehold 240 m² high-street unit for £320,000 to trade from. The purchase had been treated entirely as property; we were instructed to establish the embedded plant within the price.

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
£30,920
Special rate pool
£50,455
Total qualifying plant & machinery
£81,375

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%
£20,344
Individual, higher rate 40%
£32,550
Individual, additional rate 45%
£36,619

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.

£1 in every £4 the client paid for the shop qualified for relief.

More outcomes

Related case studies.

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

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