Case Study
£150,000 Left on the Table
A hotel refurbishment included major qualifying plant works, but a Section 25 oversight left significant allowances unclaimed.
Overview
A hotel owner carried out a major refurbishment including a new heating system, air conditioning, and lighting upgrades. The accountant identified core qualifying plant and machinery, but missed a substantial additional claim under Section 25 of CAA 2001.
What happened?
The core systems were captured, but related enabling works were omitted.
- Rewiring and pipework required to install the qualifying systems were excluded.
- Ceiling and wall modifications needed to accommodate installations were not claimed.
- Temporary access works undertaken to deliver qualifying items were overlooked.
What was missed?
Section 25 can allow incidental construction work to qualify when it supports qualifying plant activity.
How a CA Specialist would have prevented this
A technical survey led review would have captured the full qualifying scope.
Formal site survey
Assessed all works completed, not just ledger descriptions.
Incidental works mapping
Linked construction activities to qualifying plant and machinery.
Correct categorisation
Allocated costs under the correct Capital Allowances treatment.
Improved claim outcome
Increased the claim materially by recognising the missed £150,000.
Key lesson
An accountant alone may not have the construction knowledge to identify every qualifying expense.