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Residential Care Homes – Apply for a VAT refund now!

Steve Allen, Director of VAT Solutions, provides a VAT tip for owners of residential care homes.

Historically, care services supplied in residential care homes were always treated as being exempt from VAT.  However, several years ago, this treatment was challenged by the Kingscrest Care Group, who wanted to register for VAT in order to reclaim substantial amounts of VAT incurred on capital expenditure costs. The challenge ended up in the European Court , which ruled in Kingcrest’s favour by stating that UK law did not exempt care provided in residential homes that were not registered for the provision of nursing care.

Brian Bullock, Managing Director of Building Construction Partnership offers a reply to this suggestion…” This is a very interesting article provided by VAT solutions and is obviously written for commercial purposes.  We cannot recommend the Company itself, but, we will be looking further into the issues via the HMRC and as a subscriber to this site you will receive the information once it has been sourced.

Steve Allen, Director of VAT Solutions,  an established independent firm of Chartered Tax Advisers, concludes his article .

“In summary, if you own, or used to own, a residential care home where there is some capital expenditure and a good ratio of council-funded occupants, you may well be entitled to a VAT refund (some have been six-figure amounts)”.

                 

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