Case study – Historical review of enhanced capital allowances

  • 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.

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Whether it’s a current investment project or you would like to discuss a historical review of expenditure, we can help.

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