- 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