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%
35% - 50%
How we can help?
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.
"Colne Capital Allowances provided us with a professional strategic approach to capital allowances and a personal service, helping us make significant tax savings"
Paul Crosbie, Fund Manager, M&G
"Colne Capital Allowances have worked across a number of our property funds and across all asset classes for over 17 years. Their proactive approach throughout our property fund cycle has ensured that our funds claim all the tax savings which they are entitled to. They consistently deliver a high quality service combined with a personable […]
Chris Warren, Managing Director - Fund Services, Patrizia
"David has always been very responsive and produced excellent quality reports that have enabled clients to claim all allowances they are due. A pleasure to work with."
Andrew Noton, Partner - Lubbock Fine
"Whirledge & Nott have been repeatedly recommending Colne Capital Allowances to our clients for over ten years and they continue to impress with their professionalism, expertise and timeliness"
Michael Hughes, Managing Director - Whirledge & Nott
"Colne Capital Allowances made dealing with our capital allowances as simple and professional as can be. The process was seamless and the results outstanding."
David Butcher, Upham Pub Group
"Colne Capital Allowances will always tell us up front if there is a case to be pursued. We find their charges very acceptable, and the success rate on our cases has been 100%. First rate service."
Martin Waller, Investra Capital & Pelham Associates
"I've worked with David over many years, recommending his invaluable service to many others too. The relationship gives me peace of mind, support in abundance and a 'can do' attitude that makes light work of the tasks"
Gill Kreft, Pendine Park Care Organisation
Expert industry insight
Budget 2021 (27th October)Annual Investment Allowance (AIA) – Extension of £1m AIA- 31st March 2023
Is 2021/2022 the best time to carry out qualifying expenditure