If you own a holiday home and pay tax on the rental income from this property in the UK then you could be missing out on thousands of pounds of tax allowances. Providing your holiday home(s) is available to be let for at least 210 days per year and is actually let for at least 105 days per year then you could have a claim for Embedded Capital Allowances.
As the name suggests these are items embedded in the property and forming part of its overall value when you bought it. It covers things such as radiators, heating systems, air conditioning, bathroom and toilet fittings, kitchens, security systems and much more.
Typically we would expect to find around 25% of the original purchase value of the property in previously unidentified Capital Allowances. £125K of allowances in a £500K property which translates as £50K in tax refund and/or reduction in future tax liability to a higher rate tax payer. So it’s an exercise well worth doing.
Claiming Embedded Capital Allowances is a risk-free exercise well worth considering when you own commercial property. You can estimate your total claim using our claims estimation tool or book a consultation with one of our claims specialists who can prepare an estimation on your behalf.