Restaurant renovation
Claiming Capital Allowances for a restaurant owner who renovated a building.
The Stag at Mentmore Ltd
A group of local community investors bought a pub from a brewery in 2020, only 2 weeks before lockdown. They decided to use this period to renovate the pub and invested £233k to upgrade the bar and restaurant following years of under investment.
The challenge
What did we need to do?
One of the investors, Nick, contacted Sponjem, having been recommended to Paul Jempson by his accountant, to see what capital allowances could be claimed on the huge investment they had made.
His main worries were the time it would take him to complete the claim and making sure everything was submitted correctly.
When doing a major refurb there is so much involved from stripping out electrics to reflooring. Some things are claimable and some are not, which was a minefield without Sponjem’s expertise and experience.
To tackle this challenge, Paul worked closely with Nick as well as others involved in the project to complete a claim – identifying £74k of Capital Allowances in the 2020 tax year, followed by a further £50k of Capital Allowances in the 2021 tax year plus £109k of Structures and Buildings Allowances.
The results
What did we manage to achieve?
Paul at Sponjem was able to save Nick £124k and importantly for Nick, took the hassle away and gave him peace of mind that there would be no comeback years down the line.
And even if there was, he would have someone fighting his corner!
In hindsight, Nick wished he’d got Sponjem involved much earlier at the planning stage. He would have done a few things differently during the refurb, which may have saved him even more!
