Helping a fit-out specialist turn capital allowances into a competitive advantage
Capital allowances are meant to incentivise decisions in major business investments but their impact is frequently misunderstood at planning. This was the challenge proposed by a multi-disciplinary design led office fit-out company where budgets were tight and value engineering competed with quality and innovative space management.
The Challenge - Strengthening the commercial proposition
The business wanted to incorporate potential capital allowances into project budgets, giving clients clearer information while strengthening the competitiveness of its proposals.
The Approach - Building tax insight into estimating
We trained project surveyors to identify potential opportunities, understand the principal conditions for a claim and code budget cost schedules for review and tax-saving estimates
Contractor Benefit - More credible budgets and bids
The design and estimating teams could identify which project elements offered the greatest potential tax relief, helping them demonstrate additional value and provide more informative client budgets.
Client Benefit - Clearer tax savings and stronger claims
Clients received an early indication of potential tax savings to support investment decisions, while their tax teams gained better information and a valuable head start when preparing the eventual claim.
Tax value identified across recent fit-out projects
Some examples of the projects and first-year tax saving that the project teams brought to budget negotiations and pre-construction client discussions that converted to completed projects.
Engineering Company
Alterations and conversion to create office space for a new tenant.
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Project Value: £340,130​
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Estimated First-Year Tax Saving: £40,481
Cosmetics Packaging
Alterations and conversion to an existing building to create modern office space.
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Project Value: £658,000
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Estimated First-Year Saving: £47,872
Marketing Agency
Head office fit-out.
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Project Value: £245,715
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Estimated First-Year Tax Saving: £35,068
Food Distribution
New partitioning, electrical and data works, HVAC alterations, decoration, floor coverings and new furniture.
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Project Value: £249,900
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First Year-Tax Saving: £37,033