As capital allowance specialists, whenever we have a client who owns a care home, from the onset we know that they are likely to be entitled to a large amount of capital allowances, as long as they haven’t claimed before. Due to the nature of care homes, there are a whole host of items within the property that qualify for tax refunds, which adds up to a pretty hefty claim.
Once we found out that the property was worth £2,330,440, we got an idea of the scale of this claim and the type of allowances that would be found. The process itself was easy, stress free and required minimum input from the client, as with all our other clients. The client was unaware of just how much they could claim on their property and once we explained the importance of claiming, they soon saw these allowances as their right, not privilege, especially since they had been overpaying a great deal of tax, which we were about to refund to them.
Within the property, we identified allowances on items including boilers, sanitary ware, heating systems, kitchen items, security systems, door closers, suspended ceilings, lighting systems, air conditioning and more. As with all our other claims, these items are essential to the running of a care home and without which the property would not be able to function, so it was important for the owner to claim the tax refunds they deserved on these items.
Within the home, we identified £738,600 worth of allowances, which resulted in a cash refund of £89,820 to the property owner, upon which they soon realised that this was certainly a worthwhile exercise.
Whenever we survey properties such as this one with such a high amount of allowable items, we almost can’t believe that the client hasn’t made a claim before and that they have been sitting on a wealth of tax relief they never knew they were entitled to. The common reason for this is because the client believes that their accountant will have already dealt with any capital allowance claims, which is often not the case because accountants don’t have the specialist knowledge of this area of tax or a team in place qualified to deal with these claims. This is why it is important to employ specialist capital allowance experts, such as ourselves, to identify any potential claims.