Automated warehouse development case study

One of the UK’s largest grocery home delivery companies engaged Gateley Capitus to analyse the costs incurred on a major redevelopment of an existing warehouse. Our involvement saved the client over £9m in tax. The £60m redevelopment of an existing site into a cutting-edge automated warehouse was carried out over a two-year period.

How did our tax relief specialists help?

The client: Leading grocery delivery company

The works: The property was an existing warehouse that was comprehensively refurbished and extended to create a highly advanced distribution warehouse. The building housed a state-of-the-art goods picking installation. Robots were used to independently pick the goods required for individual customer orders.

Services included mains switchgear, power and distribution, smoke and fire alarm, general and emergency lighting and lift, refrigeration, sprinkler & sanitary installations.

The value of maximising capital allowances on a warehouse development: Using a specialised methodology and combination of property costing, valuation and accountancy skills we analysed the total development expenditure of £60m and identified over £46m of plant and machinery allowances.

In conclusion: The correct analysis of construction expenditure by experienced tax incentives advisors yields significant tax relief.  In total the client saved over £9m in corporation tax.

What you need to know

If you are an investor or occupier buying, developing, or refurbishing warehouses speak to us and we will provide a no obligation review of expenditure to illustrate the tax benefits.