Capital allowances for holiday lets
Unlock hidden tax advantages and maximise your returns
Capital Allowances on Holiday Lets
Capital allowances are a form of tax relief that businesses can claim on certain types of capital expenditure, such as assets they use in their business. You don’t want to be paying more tax than you have to, so understanding your capital allowances is crucial!
For owners of furnished holiday lets, capital allowances provide tax relief on the reduction in value of ‘plant and machinery assets’, such as furniture, fixtures and fittings. Unbeknown to most owners, this can include items that were already in the property when it was purchased.
Have the best capital allowances consultants on your side
At Eureka Capital allowances, we have decades of experience in capital allowances, and help our clients to unlock thousands of pounds of hidden tax relief in their properties. We also offer a free review.
We don’t just help furnished holiday let owners, we also provide our knowledge and services to pubs and restaurants, B&Bs, offices, doctors and dentist surgeries and care homes and nurseries too!
How to know if your holiday let qualifies for capital allowances
There are a number of different criteria your holiday let needs to meet in order to qualify for capital allowances:
Capital allowances services
Capital Allowances purchase claims are widely under claimed in the FHL industry. At Eureka, our capital allowances services can help to save holiday let owners tens of thousands of pounds by identifying hidden tax relief on embedded fixtures that they’re unaware of.
In fact, using a specialist Capital Allowances firm, holiday let wonders can save around £35,000 in tax savings per property!
Why choose Eureka?
What are capital allowances for holiday lets?
Capital allowances are tax deductions that holiday let owners can claim on certain types of capital expenditure, such as furniture, fixtures, and fittings. These allowances can help reduce taxable profits and lower tax bills.
What types of expenses qualify for capital allowances in holiday lets?
Expenses that typically qualify for capital allowances in holiday lets include furniture, appliances, carpets, curtains, and certain fixtures such as kitchen units and bathroom fittings.
How do I claim capital allowances for my holiday let property?
To claim capital allowances, you need to include them in your tax return. You’ll need to provide details and evidence of the items for which you’re claiming allowances and the amount spent on each.
Why does a holiday let qualify for capital allowances but a buy-to-let property doesn’t?
A holiday let property qualifies for capital allowances because it is considered a commercial property, operated as a business for short-term holiday rentals. A buy-to-let property, on the other hand, is usually considered an investment, and is rented out on a long-term basis for residential purposes.
Questions?
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