In a sector where demand is buoyant, Healthcare (including Dentists, Therapists, Private Practitioners, etc), Care Home and Assisted Living operators will no doubt be thinking about ways to optimise efficiency and savings within the business.  One of those areas is tax saving through Capital Allowances.  

Capital Allowances are a valuable form of tax relief available on capital investment that can generate real cash flow benefits.  There are two fundamental areas of capital investment commonly undertaken where tax relief is often overlooked: 

  • Property acquisitions
  • Refurbishments / Improvements

Property acquisitions can give rise to advantageous tax reliefs through the capital allowances regime. The rules changed for transactions on or after 1 April 2014, requiring new acquisitions to have the capital allowances position clearly defined at the point of sale. Older transactions and specifically those acquired from local authorities or NHS alike, could contain considerable levels of unclaimed allowances.  In some cases, this could be up to 40% of the expenditure which presents an opportunity to make a claim.

Tax relief through Capital Allowances can be made on construction, refurbishment, repair and fitting out works carried out on a property providing the claimant can identify that the capital expenditure qualifies as an expense pursuant to their business or trade.

Typically maintenance repairs are categorised as revenue expenditure, however, replacement of assets may fall into the classification of special pool (integral features allowances).  This could include heating, lighting, etc.

With the healthcare industry braced for financial challenges ahead, it is imperative that businesses take advantage of the tax reliefs available by assessing what value can be unlocked on current, future and historic projects. 

Jex Capital Allowances has considerable experience of working with the Healthcare sector and are able to support and maximise the claim available to you.

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