What Could Your Allowances Be Worth
What are capital allowances worth? We act for a wide range of clients for properties throughout UK, Ireland and beyond. We work on projects from small furnished holiday lets, retail units, industrial parks through to multi-million pound developments all with varying amounts of capital allowances .
Below are a range of projects we have worked on, highlighting the tax savings and issues that were overcome by us to maximise our client’s claims.
CASE STUDIES
Case Study - Purchase of a Furnished Holiday Let
The UK holiday property sector attracts huge investment interest. To qualify as a Furnished Holiday Let (FHL), a property must meet certain conditions governing the furnishing of the property and also, the minimum number of days it is made available for letting and physically occupied by a paying guest each year. As FHLs are classified as a commercial operation, this means they have tax advantages over traditional buy-to-let properties as they are not subject to the same tax rules as privately rented properties in the residential sector. For example, profits can be used for pension contributions, capital gains tax can be lower, and most expenses associated with running the property are tax-deductible. In addition, as some are run as small businesses, they may qualify for small business rates relief.
However, are you aware that additional tax relief is available with capital allowances, with between 15-30% of the purchase price qualifying for relief. This case study highlights the tax savings one of our clients achieved on their property.
Case Study - Development of Furnished Holiday Lets
The UK holiday property sector attracts huge investment interest. To qualify as a Furnished Holiday Let (FHL), a property must meet certain conditions governing the furnishing of the property and also, the minimum number of days it is made available for letting and physically occupied by a paying guest each year. As FHLs are classified as a commercial operation, this means they have tax advantages over traditional buy-to-let properties as they are not subject to the same tax rules as privately rented properties in the residential sector. For example, profits can be used for pension contributions, capital gains tax can be lower, and most expenses associated with running the property are tax-deductible. In addition, as some are run as small businesses, they may qualify for small business rates relief.
However, are you aware that additional tax relief is available with capital allowances, with up to 100% of your expenditure may qualify qualifying for relief. This case study highlights the tax savings one of our clients achieved on their property.
