FTSE retailer Private hotel FTSE bank Property investor Lovell Consulting advised a high net worth individual who purchased a hotel for £5m. The hotel was constructed in 1980 and no records were available of the original building cost. Lovell Consulting prepared a detailed assessment of the original building cost of approximately £3m. Since hotels are regarded as industrial buildings for tax purposes they have a 25 year tax life. In 2004 when purchased, the tax life remaining was one year. It was possible to claim all of the capital allowances in one year. The one year tax saving was £1.20m, which was available for offsetting against other personal income. If this client sells there will be no clawback of this saving. Additional plant and machinery allowances and hotel allowances were also claimed on refurbishment expenditure carried out by the previous owner. Top of page

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