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Untapped capital allowances provide resource for growth

03 December 2021 : Case study

Winn Property Limited is a property development company based in Cheshire, owned by Michael & Nihal Winniczuk. 

As an existing client, we have seen them build a strong business by acquiring and developing different types of commercial property in the North-West, which they then lease out.

Getting to know you

Our mission is to become ‘trusted partners’ in business, and this is how our relationship developed with Winn Property. We began to understand the ins and outs of Michael and Nihal’s business, we noticed they had two existing commercial properties where a capital allowance claim hadn’t been made – so we needed to understand, why? 

The two properties were a two-storey building in Wilmslow and three ground-floor retail units in Ashton-on-Mersey. Always tackling the tricky subject, when we discussed the properties at our next meeting, the Winniczuk’s felt that because significant time had elapsed since they purchased the property, their opportunity to claim capital allowances had expired. They also said that due to the nature of the activity in the Wilmslow property when it was purchased, they were told that it wouldn’t be possible to make a claim.

We still thought it was worth investigating, mainly because the potential tax savings available could prove central to the growth of the business moving forward. However, due to the complications that came with the properties, we were honest enough to know that our current team wouldn’t be able to fully scrutinise the opportunities. Instead, we needed a team that would take a deep dive into both properties and provide the specialism that could get the Winniczuk’s the maximum value. 

‘We Discover More’

That’s the motto that the team at Capital Allowance Review Service (CARS) live by. Made up of Chartered Accountants and Surveyors, tax experts and even an ex-HMRC inspector, they certainly know how to dig deeper and maximise tax savings.

An award-winning business with over 20 years of experience, they utilised their extensive knowledge in dealing with capital allowance claim. More importantly for this case, they are experts when it comes to historic claims. 

“Understanding the true value of a property”

Firstly, our team worked with CARS to gather evidence confirming the ownership history and activity that helped to estimate the tax savings available across the two properties.

The CARS team then visited both properties for a detailed site inspection to develop the estimate and completely understand the claim available to Michael and Nihal.  

Why is a site inspection necessary? Good question, we’ll let the Managing Director of CARS, Chris Roberts, take this one “You can’t truly understand the value of a property unless you visit it. We often see items that have been missed because the checks in place aren’t investigative enough. Understanding all the data allows us to maximise the level of capital allowances within the purchase cost of the property”.

Did they find hidden treasure? 

The Capital Allowance team may not have found a treasure chest, but they certainly found treasure. At the Wilmslow property, a full claim for both general and special rate pool allowances was shown to be available. A claim was also established for the retail units in Ashton-on-Mersey for parts of the building considered integral features, which comes from the special rate pool.  

So, what did that mean numbers-wise for Winn Property? 

Winn Property Case Study Results

Once the CARS team had calculated the claim available, they worked with us to apply it to Winn Property’s tax position by submitting their amended tax return to HMRC. Michael and Nihal are then covered if the claim is ever challenged, giving them not only the resource to grow the business but also peace of mind for the future.

Don't just take our word for it...

“Everything was very efficient and the team retrieved us a good amount of money back, so we are really happy. We were recommended to them through our accountant and that put assurance in our mind that everything was above board. We are pleased that we went ahead with the claim”.

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