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Healthcare & Medical Capital Allowances

Dental practices, care homes, medical clinics and assisted living facilities contain extensive specialist embedded assets - from dental equipment and medical gas systems to lifts, hoists and adapted facilities. Most healthcare property owners miss significant tax relief opportunities.

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20-35%
Of Property Value Claimable
£180,000
Average Care Home Claim
8-12
Weeks to Completion

The Embedded Assets Opportunity in Healthcare Properties

Every healthcare property owner faces the same challenge: you've invested heavily in specialist infrastructure to meet regulatory requirements and provide quality care, but you're likely missing out on significant tax relief for those investments.

Which healthcare properties qualify?

The scope is broader than many realise. Whether you operate a care home with lifts and nurse call systems, run a dental practice with specialist chair installations, manage a medical clinic with treatment room infrastructure, operate an assisted living facility with adapted bathrooms throughout, run a veterinary practice with surgical infrastructure, or operate a mental health facility with enhanced safety systems - all of these contain embedded assets that qualify for capital allowances.

Why healthcare properties are different:

Unlike standard commercial properties, healthcare facilities require extensive specialist infrastructure simply to operate legally and safely. Every lift installation, nurse call system, medical gas connection, adapted bathroom, and enhanced fire safety system represents embedded value that's been built into your property. These aren't optional extras - they're essential infrastructure that regulatory bodies require, but they're also assets that qualify for significant tax relief.

The scale of the opportunity:

Healthcare properties typically contain embedded assets worth 20-35% of their property value. For a £2 million care home, that could mean £400,000-£700,000 in embedded assets. For a £500,000 dental practice, that could mean £100,000-£175,000. Yet most healthcare operators never claim on these assets, leaving tens or hundreds of thousands of pounds in unclaimed tax relief sitting in their properties.

What Qualifies in Healthcare Properties?

Accessibility Equipment

£25,000 - £80,000
Passenger lifts and stairlifts
Ceiling track hoists
Wheelchair ramps
Automatic door systems
Handrails throughout
Level access showers

Medical & Dental Systems

£20,000 - £80,000
Dental chair installations and plumbing
X-ray equipment and shielding
Medical gas installations (O2, N2O, medical air)
Nurse call systems
Specialist clinical lighting
Profiling bed infrastructure
Treatment room equipment
Sluice room installations
Sterilisation equipment installations

Fire & Safety

£20,000 - £60,000
Fire detection and alarm systems
Sprinkler systems
Smoke containment
Emergency lighting
Fire doors throughout
Evacuation equipment

Adapted Bathrooms

£3,000 - £8,000 per room
Wet room installations
Level access showers
Specialist sanitary ware
Grab rails and supports
Emergency pull cords
Thermostatic controls

HVAC & Ventilation

£30,000 - £80,000
Central heating systems
Temperature control zones
Ventilation systems
Extract systems for laundry/kitchen
Air quality systems
Underfloor heating

Kitchen & Laundry

£15,000 - £45,000
Commercial kitchen installations
Extract and ventilation
Commercial laundry facilities
Steam systems
Water treatment
Drainage and grease traps

Why Healthcare Properties Are Asset-Rich

Unlike standard commercial properties, healthcare facilities require:

Specialist medical equipment

Dental chairs, X-ray installations, medical gas systems, and clinical equipment that standard properties never include.

Regulatory compliance systems

Comprehensive fire safety, nurse call systems, and emergency infrastructure required by CQC and regulatory bodies.

Accessibility infrastructure

Lifts, hoists, ramps, adapted bathrooms, and accessibility features throughout - far beyond standard buildings.

Clinical environment controls

Specialist HVAC, air quality systems, and temperature controls essential for patient care and regulatory compliance.

Commercial-grade facilities

Commercial kitchens, laundry facilities, and specialist installations that exceed standard property specifications.

Enhanced safety systems

Sprinkler systems, containment measures, emergency lighting, and security systems beyond standard requirements.

All of these specialist installations contain embedded assets that most accountants overlook.

The Embedded Assets Your Accountant Misses

Your accountant likely claims capital allowances on:

  • Moveable medical equipment
  • Furniture and soft furnishings
  • IT equipment and computers
  • Office furniture

But they're probably missing:

  • Medical gas installations (£15,000-£50,000)
  • Nurse call systems (£20,000-£60,000)
  • Lift installations (£30,000-£80,000)
  • Commercial kitchen infrastructure (£25,000-£75,000)
  • Specialist HVAC systems (£20,000-£60,000)
  • Fire safety and sprinkler systems (£15,000-£50,000)

These embedded assets typically represent 20-35% of your healthcare property's value.

Case Study

Case Study: 40-Bed Residential Care Home

40-bed residential care home, purchased 2019

Purchase Price
£1,850,000
Embedded Assets
£512,000
Tax Relief Secured
£97,280

Key Embedded Assets Identified

Nurse call system throughout all resident rooms (£42,000)
Passenger lift installation (£68,000)
Adapted bathrooms in each resident room (40 rooms) (£180,000)
Commercial kitchen infrastructure (£98,000)
Fire safety and sprinkler systems (£63,000)
HVAC and ventilation systems (£61,000)

Healthcare & Medical Facilities Capital Allowances FAQ

How much can a typical care home or medical facility claim?
Claims typically range from £50,000-£300,000+ depending on property size and specification. A 40-bed care home might claim £150,000+, while larger facilities with extensive medical equipment, multiple lifts, and specialist installations can exceed £300,000. Dental practices and medical clinics typically claim £50,000-£150,000.
We've owned our healthcare property for many years. Can we still claim?
Yes! Many healthcare operators have owned properties for years without claiming embedded assets. Retrospective claims are possible. For properties purchased before 2012, there's no time limit. For post-2012 purchases, there's generally a 2-year window, but exceptions exist. We'll assess your specific situation.
Do medical equipment and dental chairs qualify?
Fixed installations like dental chair plumbing and electrical connections, X-ray room infrastructure, and medical gas systems qualify as embedded assets. However, moveable medical equipment should be claimed separately through Annual Investment Allowance (AIA). Our focus is the building infrastructure and fixed installations.
What about CQC compliance systems - do they qualify?
Absolutely! Many CQC compliance requirements create embedded assets - fire safety systems, nurse call systems, emergency lighting, accessibility equipment (lifts, hoists), and specialist HVAC systems all qualify. These are often significant value items that many accountants miss.
Will the survey disrupt residents or patients?
No. When a site survey is required, our specialist surveyors work carefully around care routines and patient schedules. Surveys are planned to minimise disruption, and we coordinate with staff to access areas at appropriate times. We understand the sensitive nature of healthcare environments.
Do lifts and hoists qualify for capital allowances?
Yes! Passenger lifts, goods lifts, and patient hoists are significant embedded assets. A single lift installation can be worth £30,000-£80,000 in capital allowances. Many care homes have multiple lifts which add substantial value to claims.
Can we claim on adapted bathrooms and accessibility features?
Yes! Adapted bathrooms, wet rooms, grab rails, ramps, and accessibility infrastructure throughout healthcare properties all qualify. In care homes, where every resident room may have an adapted bathroom, this can represent a substantial portion of the claim value.
What about commercial kitchens in care homes?
Commercial kitchen infrastructure including extraction systems, gas installations, refrigeration infrastructure, and specialist equipment all qualify. These are often worth £25,000-£75,000+ depending on the facility size.
How long does the process take for healthcare properties?
From initial consultation to receiving tax relief typically takes 8-12 weeks. If required, the property survey takes a full day for larger facilities, the comprehensive valuation report takes 3-4 weeks, and HMRC processing takes 4-6 weeks after submission.
Do dental practices have different considerations?
Dental practices often have specialist embedded assets including dental chair infrastructure, X-ray room installations, medical gas systems, and specialist electrical requirements. These specialist installations can significantly increase claim values compared to standard commercial properties.
Will the survey disrupt residents?
Our surveyors are experienced working in care environments. We schedule around care routines and work sensitively in occupied areas.
What about equipment we've replaced or upgraded?
Replacement and upgraded embedded assets can also be claimed. We'll assess both original installations and any subsequent improvements.
Do you work with care home groups?
Yes, we work with operators from single homes to large groups. Multi-site assessments are handled efficiently with consistent methodology across your portfolio.