Budget heralds changes to capital allowances claims

Posted on April 1st, by editor in Caring Times. No Comments

Major changes announced in the national budget could leave many care home owners substantially worse off in the coming years. _Caring Times_ highlighted in March last year that many care home owners, especially smaller operators, had overpaid tax by thousands of pounds, after having failed to claim all their tax allowances. The allowances in question are ‘capital allowances’ relating to items of plant and machinery in the fabric of the building, which can include heating and lighting, water systems and sanitary ware, and much more. As a reminder of what these allowances are worth, care home owners could be looking at a tax saving or repayment of 10-15 per cent of the purchase price. So, if a home was bought for say £800,000, there could be a tax saving of £120,000 – not to be sniffed at. Our experience has shown that many care home owners have not simply claimed less tax relief than they should, but have failed to claim any tax relief at all. However, Gordon Brown’s recent budget paves the way for c

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