Capital Allowances are available for UK taxpayers and the relief can be up to 40% of the cost of your property and even higher for refurbishments, extensions and alterations. What’s more, if you bought or undertook the expenditure in the last two years it may be available immediately.
HMA Tax
If you own a Furnished Holiday Let personally or in a limited company, and pay tax on the rental income in the UK, then you could be eligible to receive thousands of pounds of tax relief through claiming Capital Allowances. We have partnered with HMA Tax, the UK’s leading independent Capital Allowances specialists, to provide this valuable service for Host & Stay clients.
What are Capital Allowances?
Capital Allowances are a type of tax relief for businesses generated by claims following capital expenditure on commercial property. When purchasing long-term assets for your property, you are unable to claim expenditure through the Profit and Loss Account. However you may be able to claim Embedded Capital Allowances in line with the Capital Allowances Act 2001.
Capital Allowances deduct the cost of certain assets from taxable profits on commercial property including the purchase of an old or newly built property, construction of a new property, building alterations, extensions and refurbishments to a property, and the fit out of let property.
The Capital Allowances Act 2001
The Capital Allowances Act was introduced in 2001 as an Act of Parliament of the UK which governs how capital allowances are deducted from income taxable under the Income Tax Act 2007 and the Corporation Tax Act 2009.
Using a process known as depreciation or amortisation, a business will reduce or write down the value of many of its assets in its accounts year by year. Through an amended personal or corporation tax return, the deprecation can be replaced with Capital Allowances which can be used to reduce taxable profits as well as a produce a tax rebate.
Capital Allowances are optional but must be specifically claimed. Capital Allowances are often left unclaimed due to lack of awareness and the complicated nature of the legislation which is where our collaboration with HMA Tax comes in.
Estimate the Value of Your Unclaimed Capital Allowances
On average HMA Tax find 26.5% of the purchase price of a holiday let property in unclaimed allowances. Claimable items within the property include: bathroom and toilet fittings, kitchens, lighting, access control systems, flooring, heating systems and certain outdoor items such as hot tubs. Basically, most things that are embedded in the fabric of the building.
Take advantage of the exclusive partnership between Host & Stay and HMA Tax, and estimate the value of your unclaimed Capital Allowances today.
FIND OUT MOREAbout HMA Tax
HMA Tax have a 100% success rate with HMRC and have identified over £450m of allowances for their clients. They submit successful claims to HMRC every day and their expert team ensures they maximise the potential allowances claim by utilising their experience in this niche area of taxation.
Holiday Let Case Studies
