Can I claim capital allowances on a holiday let?
Holiday Let Owners
If you are the owner of a furnished holiday let in the UK or EEA (European Economic Area) whether that be an Airbnb or other form of holiday let, you can benefit from lower tax bills and increase your cash flow by claiming capital allowances.
Most commercial property and business owners are unaware of the generous tax savings available through Capital Allowances.
Capital Allowances are calculated as a percentage of the property purchase or refurbishment price.
The claim will equal 10-40% of the property purchase price and up to 80% of the refurbishment price.
So If you purchased a property for £250,000 you could potentially claim up to £100,000 to be deducted from your taxable profits.
Do I Qualify
The property must be available for letting as short-term holiday accommodation to the public for at least 210 days in the year.
The property must be let for at least 105 days a year.
Longer term occupation (over 31 days) must not exceed 155 days in total.
The owner must be a UK Tax Payer
The business must be commercial, meaning it is let on a commercial basis with the view to making a profit, lettings to friends or family at zero or nominal fees do not count as a commercial let.
With our expert knowledge in Capital Allowances and commitment to excellence we can help you to maximise your return on investment and profitability by easily identifying if you are eligible to make a Capital Allowances claim.
To see if you are eligible to claim, simply visit our ‘Do I Qualify’ page and our team will be in touch to start the claim process.