Nursing home

Fulford Nursing Home

Tax Advisory Wealth Management Tax Compliance

Fulford Nursing Home, a long-established family-run care home, had been operating as a traditional partnership for many years. While this structure had served them well during the early stages of the business, it was becoming increasingly clear that it no longer aligned with the future needs and ambitions of the owners.

With one of the partners reaching later life, a key concern was the growing complexity of their personal tax position. The partnership model offered limited flexibility for income tax planning, and the family were also becoming increasingly aware of the potential inheritance tax implications. Adding to this, succession planning was top of mind. Several family members stood to inherit a share in the business, but many of them were not directly involved in the day-to-day running of the nursing home. This raised understandable concerns around control, continuity, and clarity for the future.

Fulford Nursing Home needed a plan – one that addressed their current tax liabilities, safeguarded the future of the business, and helped ensure a smooth generational transition when the time came.

The best phone call I ever took. Every January, tax season filled me with dread - until Fortus asked "why aren't you Ltd?" That conversation was the start of a partnership built on trust. They took the time to understand my business, listened when it mattered, and have been by my side ever since. I feel safe with them. They're real people - kind, empathetic, and patient.Elizabeth Hancock, Managing DirectorFulford Nursing Home

The Fortus approach

We began by getting a clear understanding of the family’s goals – both financial and personal. It was important that any advice balanced the practical needs of the business with the family dynamics and long-term intentions. After detailed consultation and planning, we advised that the trade and assets of the partnership be transferred into a limited company. This move opened up new opportunities for income tax planning, allowing greater flexibility in how profits could be extracted and taxed.

Just as importantly, the new company structure created a much more robust foundation for inheritance tax planning. By restructuring now, we could help ensure that business reliefs were preserved and that the future transfer of ownership would be as tax-efficient as possible.

Finally, by separating ownership from day-to- day management, the limited company model allowed the family to start planning for succession in a clear and controlled way. It meant that those family members who would ultimately inherit shares could do so without being required to run the business – a key consideration in preserving both the integrity of the nursing home and family relationships.

The outcome

Fulford Nursing Home is now operating within a corporate structure that’s aligned with its future. The partners are benefitting from more effective income tax planning, and inheritance tax exposure has been significantly reduced thanks to early, strategic action.

Just as crucially, the family now has clarity and confidence in the future direction of the business. Roles, responsibilities and ownership are clearly defined, and the new structure provides flexibility to adapt as the next generation steps into view.

At Fortus, we know that behind every business decision are personal stories, family dynamics and long-term ambitions. For Fulford Nursing Home, this wasn’t just a financial restructure – it was a vital step in securing the legacy of a much loved family business.

From inheritance tax advice to payroll, we can help you and your business. Call Fortus today on 01904 558 300.

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