Nursing Homes & Care Homes

This nursing home, located in West Yorkshire, is owned by a limited company. We were contacted by the company ‘s accountant and were awarded the contract based on our experience in capital allowances claims on nursing and care homes as well as our competitive pricing. The end result was the identification of £365k of previously unclaimed capital allowances. At a corporation tax rate of 20% this produces an overall potential tax benefit of circa £73k.

One of the Directors of the company which owns the nursing home above also owns a care home in Cumbria as part of a partnership. This was a slightly more complex claim as there was evidence that a previous owner had claimed capital allowances. However this did not preclude a claim but did restrict it to an extent. Despite this capital allowances were able to be claimed of £212k and with the partners being subject to tax at 40% this produces a tax saving over time of circa £85k.

This care home is situated near Yeovil in Somerset. The original purchase contract listed “Fixtures & Fittings” at £6,000 but our due diligence revealed that this figure related only to items such as furniture and not “Fixtures” which had never been claimed. This is a common scenario. When we completed our capital allowances claims review we identified a further £102,831 of unclaimed capital allowances. This represents a tax saving over time of circa £41,100 for a 40% income tax payer.

This care home near Brighton was purchased for just over £1m excluding any payment for goodwill. The purchase contract showed a fixtures and fittings amount of £30,000 but as is common in sales of commercial property the items were actually not “fixtures” as defined by the Capital Allowances Act allowing us to identify a further unclaimed capital allowances amount of circa  £237,000.

As the property is owned by two higher rate tax payers the overall tax saving over time will be circa £94,000. They were very pleased with the results.

This care home in Kent was purchased in 1996 and shares in the property have subsequently been gifted to various family members. Our capital allowances claims process uncovered unclaimed allowances of £370,704. This equates to a total tax saving over time of £148,281 for the partners.

We continually strive to maximise the capital allowances to be claimed on any property for the benefit of our clients. However this has to be balanced with due regard for the applicable capital allowances legislation.