Furnished Holiday Lets | Portal Tax Claims

Furnished Holiday Lets – The Current Position

Following the budget changes in the Finance Bill 2012 there has been a general tightening of the rules regarding FHL’s. Whilst the changes regarding capital allowances on commercial properties do not apply to FHL’s generally, tax relief is now only eligible to owners who can demonstrate that they are utilising their FHL’s as a legitimate commercial business.

But the good news is that it doesn’t matter how long the FHL has been owned as it is possible to claim allowances for capital expenditure going back many years – right back to when it was acquired.

The property can be anything from a luxury villa to a studio apartment and at Portal we typically find at least 25% of the purchase price of the property in claimable capital allowances

Act Now!

Owners have a window of opportunity to offset capital allowances against any income if their expenditure was incurred prior to April 2011. They only have until January 2013 to submit a claim for the tax year 2010/2011 and possibly receive a rebate.

From April 2011 the allowances can only be used against the income from the FHL itself.

You should claim your capital allowances NOW to maximise your tax benefits!

New Rules on Eligibility

The property must be a furnished holiday let in the UK or a EEA country.
Purchase price of at least £300,000 (collectively) if located in the EEA.
The owner must be a UK taxpayer.
Income or losses must be declared in your tax return.
The property must be let out for more than 105 days each year and available 210 days or more per year.
Individual lets should not exceed 31 days and not be let to the same person for more than 31 days in a year.

furnished Furnished Holiday Lets

Free Appraisal

If you meet the above criteria for eligibility we will provide you with a free, no obligation, initial appraisal of your property and potential benefits. Please send us the following information:

A brief description of the property (selling agent’s particulars or a valuation report would be ideal), including photographs, or a link to its website.
Floor plans, if available.
Date of purchase.
Price paid for the property.
Location, region and country.
Your contact details including phone and email

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Calculate Your Likely Claim

Owner:

Property type:

Purchase price and/or Expenditure ():

Date of purchase:

Select Date Select

Est Allowances
Our Fee
Tax Relief on Fee
Net Fee Payable
Net Tax Benefit

Tax refund

10/11 Tax Year
11/12 Tax Year

Tax reduction for current year:

12/13 Tax Year

Balance tax for mitigation:

Future Tax Years

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Values Shown are not guaranteed and have been based upon assumptions including that you have paid tax over the last two years to at least the refund amount shown and assumes all assets are in the 20% main pool of allowances. Some assets may be in the 10% integral features pool which will lower the annual amount claimable, however the total benefit of the allowances remains the same. The amount claimed will depend upon your personal circumstances and are shown above for illustration purposes only.

This calculator is for illustration purposes only.

If AIA is included in the calculations, we assume that no previous deductions within the AIA allocation has been submitted.

You cannot claim Capital Allowances before the year of purchase.

Our fee is a legitimate business expense and as such is tax deductible.