Ask an expert: capital allowances

Question

I have taken on a new client which owns and operates several nursing homes. It has claimed capital allowances for routine additions like beds.

However it did not claim anything for the freehold purchases and has heard that it potentially can. Is this correct? And how should it go about it?

Answer

Yes potentially your client should be able to claim capital allowances.

Under the general rules plant and machinery (P&M) includes both moveable items (eg furniture) and fixtures inherent in the fabric of the building.

Examples of the latter include sanitary appliances and fire alarms. Also for expenditure incurred from April 2008 many major assets are now designated...