Nursing & Care Homes
Charles Rowan Accountants have provided tax and accountancy services to the Nursing and Residential Care Home Sector for many years. Charles offers his personal expertise in this area as owner of a Residential Care home business since 1987.
Care homes are being viewed as an increasingly attractive investment opportunity and are attracting new investors to the sector as well as increased activity by corporate groups. Whether you are looking to enter the sector for the first time or expand your existing business, it is imperative that you are supported by an experienced firm of accountants and business advisors.
Where businesses have incurred capital expenditure on refurbishing their care home they have often under claimed tax allowances and therefore overpaid tax. This can happen for example where the builders invoices inadequately detail what exactly has been acquired. We work alongside a specialist firm of quantity surveyors who can identify the assets which attract capital allowances and complete the relevant documentation for submission to the HMRC. Although relevant for all industry sectors, care homes attract more capital allowances than most – if you know where to look!
On the acquisition of a property where the seller has claimed capital allowances on fixtures the buyer and seller will need to make an election under S198 or S199 CAA 2001 apportioning the sale price on a “just & reasonable” basis.
It is vital that this is done to ensure the availability of capital allowances for the buyer.
We can advise on the most tax efficient ownership/operation structures for your continuing and expanding trade. It is important also to constantly review the structure as circumstances change as the personal income tax rate is now 40-45% for higher tax bands.
Some care homes are structured resulting in significant amounts of unnecessary taxation for the owner. If you feel that you are paying excessive amounts of tax or are in doubt as to your current structure please give us a call to discuss.
If you are acquiring care homes it is crucial to ensure the deal is put together correctly to maximise tax relief and minimise Stamp Duty Land Tax. We have successfully negotiated many transactions in the care sector, ranging from single unit operations to groups.
Our business associates also include funding providers who specialise in this sector with whom we have strong relationships and are very familiar with their lending criteria.