Capital Allowances Tax Relief for Furnished Holiday Lettings in the UK or EEA

If you answered yes to ANY of these questions, you may be able to take advantage of Capital Allowances Tax relief, to mitigate your previous, current and future year’s tax liability, and recover previously paid tax as well!

As long as your property:-

• Is available to be let for at least 140 days in the year
• Is actually let, on a commercial basis, for at least 70 days a year
• Is located anywhere in the EEA – European Economic Areas

If you answered yes to these questions, you may be able to take advantage of Capital Allowances Tax relief, to mitigate your previous, current and future year’s tax liability, and recover previously paid tax as well!
HMRC guidance means that whether you are an armchair property investor, entrepreneur, or own even 1 FHL property, you could mitigate your current liability, and also get a refund from HMRC for previously paid tax!
We work WITH your accountants, and apply our Accountancy, Quantity Surveying & Tax lawexpertise, to maximise your tax relief!

Capital Allowances – what are they?

Plant & Machinery Allowances, relate to the tax relief associated with certain qualifying items within the whole of your furnished holiday let.

A FHL can include:-

• VILLAS
• APPARTMENTS
• STATIC CARAVANS
• BARGES / BOATS

Each year, you can deduct up to £100,000 of your capital outlay (purchase cost) associated with these properties P&M assets from your taxable income, therefore reducing your tax bill.
Once these items have been identified, valued and documented, you can reclaim previously paid Income tax, reduce your current year income tax liability, or roll forward the allowances until such time when they are required.

The rental losses associated with your FHL business can also be ‘set-off’ against any income stream!