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Medical Centre - £180,000

A medical centre was constructed in the North East by an investor who retained the property and lets it to a medical practice. The contract was let on a design and build basis with very little breakdown of the tender cost.

Typical claimable items include: Doctor call/security system, reception desk, passenger lift, induction loop, heating system and sanitary appliances.

The construction cost was £600,000.  Stuart Rivers Associates’ analysis of the expenditure produced a claim of £180,000.

This produces an overall tax saving for a 20% taxpayer of £36,000 for the investor with a first year saving of £4,320 excluding the impact of the Annual Investment Allowances (AIA). If the owner was able to benefit from the full value of the AIA current (£200k) then the first year tax saving would increase to £36,000.