Maximising new development entitlement with £1.8m allowances on a £5m project


Development of Budget Hotel

A private investor client developed a budget hotel in 2008 for approximately £5million and was seeking to maximise the capital allowances entitlement.

Having analysed all relevant cost information obtained from the client and the quantity surveyors, including the detailed final account, supporting invoices and capital expenditure ledgers, we carried out a property inspection, and were able to identify relevant qualifying expenditure to determine the level of capital allowances and allocate it to the appropriate financial periods.

The total level of Plant and Machinery qualifying for capital allowances amounted to in excess of £1.8million, comprising Main Pool Plant and Machinery, Special Rate Integral Features and Energy Saving Plant and Machinery qualifying for Enhanced Capital Allowances, and resulted in a tax saving in the first year of approximately £80,000.

A large proportion of the residue of the development expenditure, being some £2.5million also qualified for Industrial Buildings Allowances, which resulted in an additional first year tax saving of £21,500.  However due to their phased abolition, with effect from April 2011, Industrial Buildings Allowances will no longer be available.


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Purchase Price

This is the original or anticipated purchase price or development cost of your property.

Do not enter the current value here.

Building Type

Please provide the type of building you are looking to claim allowances on.

Note: You will be able to add further information about the type of building in the next step.

Your options here are;

  • Office.
  • Retail: Including high street, shopping centres and retail warehouses.
  • Mixed Use.
  • Industrial: Including warehouses and distribution centres.
  • Other: Leisure, hotels, casinos etc.
Building Category

Please select the description that best suits your property.

Other Information

Please provide any additional information about your property that you may consider appropriate.

Floor Area

Please enter the total floor area of the property.
You can provide either square footage or metres, but only use figures here.
The floor area you specify can either be gross or net internal space.

Floor Area Units

Please select the type of area e.g. Metres or Feet
and if the measurement has been taken as net or gross internal space.

Date of Purchase

Please enter the approximate month and year of purchase, or
if you have developed the property, please provide the
approximate date of completion.

Location Of Property

Where is the property located? Please provide town/city, and country.