Holiday Let in the Lake District
A holiday let was purchased for £710,000 in 2023. Our team conducted a comprehensive review of the property and discovered £177,500 in unclaimed Capital Allowances.
Capital Allowance claim for a serene holiday let in the Lake District.
In 2023, the owner of a charming holiday let engaged HMA Tax’s services at the point of purchase for their property in the idyllic Lake District, acquired for £710,000. The holiday retreat had recently undergone upgrades to enhance the guest experience.
The engagement with HMA Tax was crucial to ensure a thorough examination of potential Capital Allowances and adherence to S198/199 considerations. We liaised with the property owner’s solicitors to ensure all allowances were claimed.
The holiday let’s considered upgrades presented a unique opportunity to capitalise on Capital Allowances. By claiming allowances on the investment in furnishings, fixtures, and other holiday let-specific assets, the owner benefitted from substantial tax relief.
Our Approach
Our team assessed the property’s improvement and refurbishment expenses, uncovering a substantial £177,500 in unclaimed Capital Allowances – 25% of the property’s purchase price.
Simultaneously, we worked closely with solicitors to ensure accurate completion of S198/199 considerations, mitigating litigation risks and safeguarding the client from consequential losses on tax savings due to inaccuracies in CPSEs.
Leveraging our knowledge of Capital Allowances and legal requirements, we compiled a detailed report outlining eligible assets and their associated values for potential claims. Collaborating closely with the holiday let owner’s solicitors and accountants, we ensured the tax savings were maximised through a comprehensive report for HMRC.
Thanks to the specialised expertise of HMA Tax, the holiday let owner secured substantial tax savings by claiming £177,500 in unclaimed allowances. The resulting tax relief amounted to an impressive £35,500.