Are You Missing Out on Embedded Capital Allowances?

Are You Missing Out on Embedded Capital Allowances?

Surprisingly there are many nursing and care home operators who have yet to take advantage of a claim for Embedded Capital Allowances (ECA).  Confusion within the sector over the distinction between what is considered under ‘normal’ Capital Allowances and an ECA claim may go someway to explaining why.

 
A ‘normal’ Capital Allowances claim covers asset additions with invoices supplied to your tax advisor or accountant, who will make the usual Capital Allowances claim as per the current legislation.  An ECA covers those items within the fabric of the building, which either existed when it was acquired or as a result of a major refurbishment where the refurbishment invoices are not detailed enough and a normal Capital Allowances claim may be missed.

A further reason for the lack of claims may be that nursing and care home operators do not realise that it is often possible to make an ECA claims retrospectively.  It is also possible for the acquirer of a nursing or care home property to claim ECA, providing the previous owner has not already done so.

At HSKS Greenhalgh, we have assisted many of our clients to make a claim.  We project manage the whole process, all you have to do is allow us access to the relevant property and we will do the rest.  We appoint a specialist surveyor who will carry out a full assessment of each property and provide a detailed report with photographs and a schedule of items on which ECA can be claimed.  We then deal with HMRC and make the claim on your behalf.

As a rule of thumb, 25% of freehold property value may be allowable for an ECA claim and with our fees charged on a purely contingent basis as a percentage of the ECA claim, you really have nothing to lose.

To maximise the benefit of your claim, you need an advisor who can provide the whole package, from the initial survey to the expert tax advice that is required.  If you think that your nursing or care home property may be eligible, our healthcare team are able to offer a free initial consultation to assess your claim.