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Claiming Capital Allowances on Furnished Holiday Lettings - news article image

Claiming Capital Allowances on Furnished Holiday Lettings

13 Nov 2019

1 minute read

A Furnished Holiday Let (FHL) is a certain type of rental property classification in the UK and Ireland (and other European countries). This classification provides a number of tax advantages to the owners of the holiday let. There are specific requirements a property needs to meet in order to be classed as a ‘FHL’, such as its availability, bookings and level of furnishings.

Unlike long-term rental properties, Capital Allowances can be claimed on your FHL property. This means some of the cost of furnishing and equipping your FHL can be deducted from your pre-tax profits.

In some circumstances up to 35% of the purchase price can qualify for allowances.

We work with a third-party on Capital Allowance claims, they combine: valuation skills, detailed knowledge of Capital Allowances legislation and extensive experience to help you to gain the best result permitted by law.

Find out if you are eligible

Email us with the following information:-
• Legal owner’s name
• Address of holiday letting
• Website used to advertise property.

We will then be able to provide an initial assessment of the potential savings.

Other tax benefits for FHL’s

There are a number of other tax benefits which FHL owners can take advantage of such as:

• Tax-advantaged Pension contributions
• CGT reliefs on sale
• Splitting income between the owners at a percentage you decide (rather than the rule applied to long-term jointly-owned rentals which we have covered in this article)
• Small Business Rate Relief to reduce or mitigate Council Tax.

Contact me David Rickwood for more information on these.

Claiming Capital Allowances on Furnished Holiday Lettings - news article image


David Rickwood

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