Case Studies
Office Refurbishments for Investment and Owner Occupation, £1m-5m
Regional Insurance Specialist
Initially, we were employed to work on a number of office investments that were undergoing refurbishments for this UK insurer. The lettings had come to the end of their tenancies and the properties required refurbishing for new occupants. These were mostly full CAT A fit-out projects between £1-5m in value.
Our work then grew to two further projects for the client’s own occupation, modernising and refurbishing regional head offices. These projects comprised both CAT A & CAT B fit-outs of £4m and £2.2m. The works required included a good degree of flexible and break out spaces and upgrading to modern services with a focus on both fire and insulation needs.
We established plant and machinery capital allowances claims of 75-80% of the works and costs expended, inclusive of some irrecoverable VAT, and some £4.5m in total, much of which fell into the 100% Full Expensing, Annual Investment and 50% First Year Allowances categories, providing significant real time business cash injections.
New Build Commercial Bakery, £5.5m
Commercial Bakery Manufacturer
A very successful existing bakery was looking to expand from a constrained city centre manufacturing location and thus acquired an out of town site from which to build enlarged and modern premises, and adjoining investment units.
The main development was to comprise both manufacturing, research and head office administrative spaces across multiple levels, to accommodate the substantial services equipment; boilers, hoppers conveyors, packaging, etc.
We worked very closely with the client and build teams to understand the property accommodation specification required to house and support the extension services equipment. This allowed us to extract otherwise hidden structural but qualifying costs.
We identified plant and machinery capital allowances of £1.8m, approximately 30% of the capital expenditure on the this light industrial facility, prior to the installation of operating equipment, for a very satisfied client.
The project represented the client’s first major building work so we took great care to guide them through the claims identification process at every stage, often steering their accountants, as well as the financial team, to collectively ensure we succeeded on this crucial project for them.
Acquisition of a Manor House and Estate for Head Offices, £3.5m
National Recruitment Provider
Our client already occupied a substantial estate headquarters on a leasehold basis, and had been building out various spaces, but then decided to acquire the property outright, as a freehold.
The purchase was from a long standing holder of the property, a pension fund and through detailed investigation it was established that the client had entitlement to make an unrestricted just apportionment capital allowances claim on the original assets.
Through liaison with the estate property team on property documentation and works carried out in occupation and a detailed survey, we established replacement costs estimates for the building, plant and machinery and the land element.
Plant and Machinery Capital Allowances of 35% of the acquisition value were calculated, providing the client with substantial tax savings.
The client engaged with our team due to our experience over many decades in the capital allowances arena, both our tax and surveying experience, and expertise in acquisition entitlement and just apportionments; we gave the client a certain confidence and trust in the entire process from start to finish.
Leisure & Health Clubs - New Builds & Refurbishments, £10-15m Annually
National Fitness Chain
The Health and Fitness chain’s UK health clubs had expanded rapidly in the past eight years. During this time, we’ve prepared capital allowance claims for the entire portfolio of more than 170 clubs. Annual spend for the Clubs runs into tens of millions of pounds, which has seen us involved in a major project management process and detailed expenditure analysis.
Our work for this ‘UK Fitness Chain ’, and through negotiation with HMRC has resulted in high value claims and agreements, saving several million pounds for the rapidly expanding company.
'At Roche Associates we always provided a very dedicated and cost effective solution to a highly valuable part of the client’s business. We have developed a long term relationship with the client team and the continuity of service, reliability and in depth knowledge of the business has been paramount in maintaining a very effective relationship.
Each year the client’s requirements change quite substantially and each time we are required adapt to suit progressive from a delivery, quality and cost perspective. Our experience level enabled us to devise quick solutions to our fast changing needs and to take an active role in all aspects of the claim production and agreement process.
Conversion of Industrial Property to Call Centre, £11m
Global IT Specialist
Our client acquired a dilapidated industry property which they leased out for a short time before a major refurbishment and conversion to a high tech process and call centre.
Before making a detailed claim, we reviewed all information to establish and protect claim entitlements. As a result, we identified additional claims and maximised all claim opportunities through a well planned, targeted and information sourcing approach.
Plant and machinery claims of over 60% were established on the £10.6m structural refurbishment. We also established a further £2.3m saving, as a third of the property qualified for industrial buildings allowance. We also helped the company make further savings of more than £500,000 through acquisition claims and land remediation tax claims.
We provided this client with a very personal, dedicated and responsive service. They particularly liked our Big Four accountancy and surveyor skill base, coupled with our senior level working – this allowed the client to always liaise with the detailed project specialist but at very competitive rates. Advising the client on this complex project, we established some very high tax claims, which they very much utilised in the business to set against the project capital expenditure outlay.
Acquisition of City Centre College for Spa Development, £2m and £20m
Specialist Investment House
Our client acquired a former college building, planning to transform it into a premier hotel and spa. Our initial task and first project (prior to a £20 million conversion) was to evaluate and form a detailed just apportionment claim; using our cost consultancy experience, we completely re-estimated the building costs at acquisition.
This was a major challenge as the building was more than 150 years old and had some very archaic and bespoke construction elements.
We worked with a professional land valuer to expertly determine the land’s correct value, so adding robustness to the claim. The resulting claims saved the client in excess of £350,000.
The client and their joint venture partners engaged with us through a referral client organisation, an existing client, and had no hesitation in appointing us on one of their most prestigious projects, a substantial new spa hotel.