Refinery Tax Structuring

01 Overview

Capital allowances and depreciation reworked across a refining and blending group. Refining and blending and Capital allowances. The figures on this page are illustrative of the kind of outcome the mandate targeted, not a promise of future results.

02 The challenge

A refining and blending group had significant qualifying capital expenditure but was not claiming allowances efficiently, leaving relief on the table and depressing after-tax returns on recent plant investment.

03 What we did

• Reviewed recent capital spend and reclassified qualifying assets for allowances.
• Rephased depreciation to match the group's tax position and cash profile.
• Coordinated with the group's advisers to make the treatment defensible and repeatable.

04 The outcome

Recovering under-claimed allowances and rephasing depreciation lifted after-tax returns on the group's plant investment by roughly 44 percent, the largest single uplift in this sample.

Capital is at risk. Past performance is not a guide to future returns, and the figures shown are illustrative. Back to all case studies.