• Client purchases offices for £10m and spends £16m on refurbishment
  • Claim made for Enhanced Capital Allowances (ECA) of £0.5m – qualifies for 100% first year allowances. This flows through to a £0.1m tax saving
  • HMRC query the eligibility of the light fittings claimed as ECAs


 Lovell Consulting involvement: 

  • Additional £3m allowances identified on plant installed within the property as an apportionment of the purchase price, such as lighting, fire alarm, heating etc.
  • Additional £7m allowances identified from refurbishment expenditure by breaking down construction costs
  • Due to specialist involvement, additional tax saving: £2m

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