Project Type – Review and analysis of data centre historical capital allowances
Total expenditure – £27m
Total plant and machinery allowances – £23.2m
Total tax saving @ 20% – £4.64m
A major data centre owner and operator invited us to review the historical capital allowances valuation made by a Top 10 accountancy practice to validate whether they were maximising their entitlement. Following a detailed review of expenditure equating to approximately £27m, we could demonstrate that not only had they significantly undervalued qualifying expenditure during the previous two years but we were also able to implement a methodology that improved the total value of enhanced capital allowances by a factor of 10.
The total uplift over the 2-year expenditure analysis equated to an additional £1m of plant and machinery allowances with the added benefit of accelerating £1.4m of qualifying expenditure by reclassifying as enhanced capital allowances. Just by applying our specialist enhanced capital allowances services we could save the client £280,000 in the year of expenditure with a further £200,000 becoming available over a period of time.