Capital allowances apply to the fixtures and fittings that make up the structure and function of your holiday let.

Many owners are unaware that qualifying fixtures are not just items added to a holiday-let since the property acquisition, but also items that were already embedded within the property at the time of property acquisition.

Owners can claim on new or existing:

• Electrical and heating systems

• Kitchens, bathrooms and sanitaryware

• Fire alarms, lighting and emergency systems

• Furnishings and equipment used in the let

• Air conditioning, security and water systems

• Integral features and plant embedded within the building

In many cases, 20 to 30 percent of a property’s purchase price can qualify for capital allowances, leading to major tax savings or refunds. These tax savings can be carried forward for years until used up, and can be pooled against other rental properties, including BTLs.

While accountants are essential for preparing and filing tax returns, identifying and calculating capital allowances requires a specialist property survey.

Most claims are missed because:

• Qualifying items are hidden within the property structure

• A detailed valuation and cost analysis can be required

• Accountants are not trained or insured to carry out building-based assessments

As a result, many property owners are unknowingly leaving valuable relief unclaimed, which will be lost forever if not claimed before the deadline.

The abolition of the FHL regime makes this the final opportunity to secure these allowances under the existing rules.

By acting before your 2024/25 tax return, you can:

• Reduce your upcoming tax bill

• Carry forward unused relief for future years

• Strengthen your property’s investment returns in the future

A capital allowances report is submitted with a holiday-let owners tax return. Once the regime ends, these opportunities will no longer be available. Submitted 2024/25 tax returns can be amended to incorporate a capital allowances report, meaning claims can be made until 31 January 2027 or March 2027 for companies, assuming there are no further legislative changes.

There is still time to act. Property owners who arrange a professional capital allowances review before the end of the 2024/25 tax year can benefit now and secure the relief they are entitled to while it is still available.

Eureka Capital Allowances offers a free, no-obligation review to confirm what you could claim for your holiday let and how much tax you could save.

Call: 02922 80 3333 Email: office@eureka-moment.co.uk Visit: https://www.eureka-moment.co.uk/contact/