What we did
French Duncan's Corporate Tax team were initially engaged by this Drinks Manufacturer to carry out a capital allowance exercise in relation to the development of an onsite anaerobic digester.
This was to be used by the firm to recycle production waste into biogas which could then be used in the production process.
Impact we had
In researching the project fully, we identified that this project was eligible for R&D (Research & Development) allowances which would permit a 100% deduction in the year of expenditure.
Capital expenditure of c. £6m was relieved over two years generating corporation tax savings of c. £1.2m (i.e. c. 20% of capital cost).
To find out more about our work in Corporate Tax, click here.