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
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!
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: