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Ashton & Carrington
Capital Allowances · Assisted living

£246,225 of allowances, from a property the vendor couldn't claim.

A residential property converted to assisted living: care-grade plant in every room, and a vendor with no entitlement, so the relief passed intact.

£246,225
Qualifying plant & machinery
35.0%
Share of purchase price
up to £110,801
Potential tax saved

The engagement

A care operator acquired a former residential property of 640 m², converted for assisted living. As the first owner using it for a qualifying activity, the full embedded plant was theirs to claim.

Our approach

  • Qualifying activity established: provision of care from the property, CAA 2001 s.11
  • Desktop analysis plus a single site survey
  • Reconstruction costs from BCIS (RICS) and Spon's data; land value to VOA benchmarks
  • Apportioned to HMRC's formula under CAA 2001 s.562
  • Filing-ready report with statutory basis and pool allocation

The result

Main rate pool
£101,950
Special rate pool
£144,275
Total qualifying plant & machinery
£246,225

HMRC's apportionment formula

Q = P × A ÷ (B + C)

Q qualifying expenditure · P purchase expenditure · A reconstruction value of plant · B reconstruction value of building · C bare site value.

What that's worth in tax

Company, Corporation Tax at 25%
£61,556
Individual, higher rate 40%
£98,490
Individual, additional rate 45%
£110,801

Relief is given through writing-down allowances over time; where the Annual Investment Allowance or full expensing applies, much of the benefit can land in year one.

A real client engagement, anonymised to protect confidentiality. Figures do not constitute tax advice; outcomes depend on individual circumstances.

The previous owner lived in it. The relief waited for the first owner who could claim it.

More outcomes

Related case studies.

Real client engagements, anonymised to protect confidentiality. Figures do not constitute tax advice; outcomes depend on individual circumstances.

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