Special tax reliefs for Ilkley manufacturer allowing expansion of factory facilities

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Garbutt + Elliott has claimed special tax relief on behalf of an Ilkley manufacturer, allowing it to expand its factory facilities. Olicana, which offers a tube bending design has extended its R&D area and built a new loading bay area. In the last 12 months it has also invested in a new machinery including a tube laser cutter, two new robot welding cells and created more than twenty new jobs.

Tax specialist Rob Durrant-Walker, and director Matthew Grant, worked with Olicana to help it save more than £60,000 tax in Patent Box, research and development (R&D) relief and land remediation relief against its corporation tax liabilities.

Rupert Pearson, managing director of Olicana, said: “We have seen a significant increase in orders during the past year which has been fantastic but we had to ensure we were in a position to deal with the surge in orders.

“Garbutt + Elliot have been essential in saving us substantial tax through their expertise and practical business sense. The tax savings we have benefitted from have been ploughed back into the business to fund our expansion plans.
“Rob and Matthew steered us efficiently and effectively through the claiming procedures, making what could have been a very complex process seem straightforward.”

The R&D scheme provides an effective rate of tax relief of 46% on qualifying costs rather than the standard 20%, whilst Land Remediation relief offers 30% tax relief on capital expenditure in clearing land affected by toxins.

Rob Durrant-Walker said: “These schemes are an attractive proposition for many businesses and we are working with our clients to ensure they maximise the opportunities available. It is unusual to have three relief schemes for one client simultaneously though.

“Patent Box is still relatively new and is an untapped way for many companies to reduce tax liability, particularly those involved in manufacturing. There are various ways in which the profits qualifying for Patent Box can be calculated and we can help clients to identify the relevant income and expenditure.”

For further information please get in touch with Rob Durrant-Walker or Matthew Grant.