Specialist Services for Care Homes

Case study: A Major Tax Rebate for a TWP Client

Acting for a care home owner, TWP has obtained a refund of tax of over £50,000 - as well as future tax savings of over £90,000 on their behalf.

The refund was achieved through the firm’s extensive expertise in Capital Allowance claims and their close working relationship with specialist Capital Allowance consultants Davis Langdon Crosher & James.

Two claims were formulated, the first based upon an apportionment of the purchase price, within which the land & buildings figure was analyzed for the Fixed Plant & Machinery content.

This is available as tax relief, in addition to whatever has been included as loose plant or FF&E in the purchase contract. Subsequently, a bedroom wing was added to the building and from the two expenditures a total of almost £350,000 was identified as being eligible for tax relief.

Philip Munk, Managing Partner at TWP comments: “For any business, Capital Allowances are available on certain capital purchases or investments. This means you can deduct a proportion of these costs from your taxable profits and reduce your tax bill.”

“This particular capital allowance claim was made for a client who switched to our firm two years ago, and owns a number of nursing homes. Following a review of their business, we identified that there were unclaimed reliefs on their properties. With the help of Davis Langdon Crosher & James’ specialist surveying skills, we have maximised the claim on this one particular care home, obtaining an instant cash refund of £50,000 of tax overpaid in prior years, plus additional allowances to claim in future years. Altogether the total tax savings amount to over £140,000. Furthermore we believe there will be additional tax savings once we have carried out detailed analysis of the expenditure on the client's other care homes."

“This rebate was made possible due to our knowledge and understanding of this client's business, and our efforts to really add value to our clients, along with our very strong relationship with David Rees, Partner at Davis Langdon Crosher & James.”

There are a range of Capital Allowances are available, including on Fixed Plant & Machinery as illustrated above, but also on other expenditures including allowances for industrial buildings and hotels, for converting space above commercial premises to flats, remediation of contaminated buildings and land, and for equipment qualifying as energy saving or low carbon emission.

Davis Langdon Crosher & James are the UK's largest advisers on Capital Allowances and over the past five years their Southampton office alone has certified Plant & Machinery allowances worth over £100 million.

TWP is a leading Weybridge based firm of Chartered Accountants.