Capital allowances for care homes
Assisted bathrooms, nurse call systems, lifts, fire doors and commercial kitchens all qualify. We typically find 35% of the purchase price.
A care home is built around equipment: passenger lifts, assisted bathing, nurse call and fire safety systems, catering kitchens and heating that runs around the clock. Much of that qualifies as plant and machinery, and on purchase it is usually left unclaimed inside the price.
We typically identify around 35% of the original purchase price in previously unclaimed allowances. On a £1m home that is £350,000 of allowances and around £140,000 in tax relief for a higher-rate taxpayer.
If you own a care home and pay UK tax, you can claim. Our in-house surveyors and chartered tax specialists work only on capital allowances, and relief typically arrives about six weeks after our first meeting.
What qualifies
Legislation that matters
HMRC’s own guidance treats care homes and similar communal residential buildings as outside the dwelling-house restriction, so fixtures in residents’ rooms qualify alongside the communal areas.
The Annual Investment Allowance is permanently set at £1m and, unlike full expensing, is not limited to new assets. On one £3.2m care home purchase it let our client claim £1.23m of allowances and receive a first-year benefit of £492,800.
Care homes change hands often. If the seller never pooled the fixtures, the buyer can lose the allowances for good. A s198 election agreed in the sale contract prevents that.
Recent care homes claims
The UK’s leading capital allowance specialists
Embedded allowances need a property survey, a valuation and specialist tax knowledge. Most accountancy firms claim invoiced items such as furniture and computers, but don’t have the surveying resource to identify fixtures built into the fabric of a building.
Allowances are not deducted from the cost of the asset when calculating a gain (s41 TCGA 1992), so a claim cannot create or increase a chargeable gain. They can restrict a capital loss, and on a sale the s198 election decides what passes to the buyer, so plan it into the transaction.
Every claim is documented to stand up to scrutiny, and we support you throughout any HMRC enquiry. To date every report we have submitted has been approved.
No. If we can’t identify previously unclaimed allowances, there is no fee. Full fee terms are set out in our engagement letter.
Two minutes, no obligation, and no fee if we can’t identify previously unclaimed allowances.
