Capital allowances legislation

 
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Owner advice > Buy to Let Guide for your Holiday Home > Capital allowances on integral features

Capital allowances on integral features

Take advantage of little known legislation to claim a tax allowance on the integral features in your holiday home, whether it’s in the UK or overseas, of up to 25% of the property purchase price. This could be worth thousands of pounds to you. Why now? The legislation may be about to change so act now before it does and the tax paid is lost forever.

  • Capital allowances on the integral features of the building - a little known tax allowance worth up to 25% of the purchase price

    UK tax payers that own holiday lets or serviced apartments anywhere in the world can take advantage of little known legislation to claim a tax allowance on the integral features in the building. This could be worth thousands of pounds to you. It is highly unlikely that your accountant will have claimed this. The legislation may be about to change so act now before it does and the tax paid is lost forever.

    Capital Allowances on Integral Features

    • Capital Allowances can be claimed on the integral features of the building (that were present when you bought it, as well as ones you may have added). See HMRC CA22310.
    • You can claim up to 25% of the purchase price of the property as a tax allowance, which will serve to reduce your taxable income
    • The tax allowance will be worth up to 12% of the purchase price as a tax saving, dependent on your tax position.
    • There are specific criteria to qualify for a claim and the experts at Hedge Tax Mitigation will advise.
    • How quickly you will get the full benefit of the allowance will depend on the date of purchase.
    • Your accountant may not have automatically claimed this type of Capital Allowance for you.
    • Hedge Tax Mitigation can supply you or your accountant with a HMRC compliant report that can be used to claim this tax allowance for you.
    • Hedge Tax Mitigation will deal with any HMRC queries for six years from the date of your claim.

Many of our owners have already used this service and been delighted to receive tax rebates.

Does the tax man have a cheque with your name on it? Find out more.