Making Your Furnished Holiday Lettings More Profitable

Capital Allowances are a valuable form of tax relief on your Furnished Holiday Lettings (FHLs) and can offer significant savings for the UK tax payer.  The tax relief has long been available to FHL owners with properties in the UK and was recently extended to also include FHLs in the European Economic Area*.

FHLs must meet certain criteria to attract these capital allowances, but those which are commercially available to let for at least 210 days a year and actually let for a minimum of 105 days will currently qualify.

Whether you have incurred capital expenditure on the purchase, construction or refurbishment of your FHL, you may be entitled to claim Capital Allowances on items including heating and air conditioning systems, electrical installations, fire alarm systems and kitchen and bathroom facilities, as well as games rooms and swimming pools for larger properties.

With the rules governing this tax relief changing on a regular basis, employing a specialist is a must to ensure a truly optimised claim. As experts exclusively in property taxation, we provide a unique skill set to evaluate all the factors of your FHL expenditure, evolve an expert tax strategy and enhance your available cash savings.

It is important that FHL owners and operators are aware that the major lettings marketplaces such as Airbnb and Vrbo (and other similar entities) cooperate with, and provide data to, HM Revenue & Customs (HMRC); and no doubt other tax regulators in the respective jurisdictions.  Thus, tax authorities may be aware of all income generated from a FHL business, whether or not this has been fully declared.  E³ Consulting would always advocate that our clients properly declare all appropriate FHL income and manage their tax savings by optimising the available Capital Allowances.

The opportunities arising from Capital Allowances on FHL properties mean that you can proactively shelter relevant business profits from tax payments, and in certain cases where there has been an overpayment of tax arising from a lack of prior claims, achieve tax rebates; without the need for elaborate or abusive tax structuring.

To explore the value we could add to your FHL property, please contact us on hello@e3consulting.co.uk or 0345 230 6450 to discuss your properties and let us provide you with a free HealthCheck to see what you could save.

* The European Economic Area includes all member states of the European Union plus Iceland, Lichtenstein and Norway.