Capital allowances on Healthcare properties are available to both the Property Company and Operating Company and can be claimed on the following types of expenditure;
Acquisition of second hand property
New build expenditure including refurbishments and fit outs
Common types of qualifying healthcare property include; Care Homes, Nursing Homes, Dementia Units, Private Hospitals, Dentists and Doctors Surgeries.
Healthcare properties often include trade specific assets which can be claimed in addition to the standard items of plant and machinery. For example, accessibility and hygiene connected installations and works associated with specialist equipment such as medical gas.
How much can be claimed?
The level of capital allowances will depend upon the nature of expenditure and level of specification however typical benchmarks are as follows;
Type of Expenditure
Level of Qualifying Expenditure
Acquisition of second hand property (unrestricted)
30% - 45%
Acquisition of second hand property (restricted)
5% - 15%
New Build
35% - 50%
How we can help?
Acquisitions
Provide early advice at heads of terms to ensure the Buyer's position is protected, including liaising with the legal and transaction teams to provide appropriate wording within the heads of terms and purchase contract
Carry out initial review and due diligence to conclude entitlement and restrictions in accordance with the Capital Allowances Act 2001
Liaise with Sellers to obtain relevant historical project/cost information for Structures and Buildings Allowances purposes – allowance statement
Obtain details of historical trade equipment claimed
Survey and prepare fully disclosed capital allowances reports for submission to HMRC
Liaise with client accountant and tax advisors throughout process
New Build Expenditure
Provide early advice to project team including tender wording and capital allowances strategic and planning advice
Survey and prepare fully disclosed capital allowances reports including identifying repairs, plant and machinery allowances, Structures and Buildings Allowances and Land Remediation Expenditure
Liaise with client accountant and tax advisors to ensure the capital allowances identified reconcile to the client accounts
£5m of historical enhancement expenditure incurred by care home provider with no detailed cost information. Insufficient information provided for accountant to make a claim. Worked closely with accountant team and client, applied quantity surveying principles and specialist knowledge to build up project cost plan for capital allowances analysis purposes. Prepared fully disclosed report for submission […]
£7m Construction of high specification 85 bed Care Home over two phases for Industry leading Care Provider. Worked closely with client project team from inception to completion to ensure all trade specific assets were captured. Identified £3.5m (50%) of capital allowances.
We prepare fully disclosed capital allowances reports for both property acquisitions and enhancement projects.
Strategic advice
We provide strategic advice throughout the property cycle including s198 elections, contributions and land remediation relief.
Due diligence
We liaise with the client and their advisors to ensure that the capital allowances position is protected during the acquisition, disposal and leasing of property.
Initial reviews
We offer a free initial review to establish if a capital allowances opportunity exists. This review is carried out with minimal time and disruption to the client.
Negotiation with the tax authorities
We apply an enquiry mitigation strategy to all of our client work. Our experience and extensive knowledge of tax legislation and case law enables us to assist with potential HMRC enquiries.
