Capital allowances on furnished holiday lets: what owners miss
A qualifying furnished holiday let can claim capital allowances that ordinary buy-to-let owners cannot. Here is what qualifies and why the rules are worth checking.
- A qualifying holiday let is treated more like a trading business.
- That opens relief ordinary residential lets cannot claim.
- The qualifying rules change, so check rather than assume.
If you own a furnished holiday let, you may be sitting on relief that owners of ordinary rental property simply cannot touch. The difference comes down to how a qualifying holiday let is treated for tax, and most owners never explore it.
Why a holiday let is different
An ordinary residential let does not qualify for capital allowances on its fixtures. A qualifying furnished holiday let is treated more like a trading business, which means the fixtures within it, the heating, the hot water, the fitted kitchen and bathrooms, the electrical systems, can attract relief. That is a meaningful difference, and it is one a lot of owners are not aware exists.
The rules are worth checking
What counts as a qualifying holiday let depends on conditions around how it is let and for how long, and those rules have been subject to change. That is precisely why this is worth a proper check rather than an assumption either way. Assuming you do not qualify can cost you. Assuming you do, without checking, can leave a claim exposed.
What to do
If you own a holiday let and have never had the fixtures looked at, it is worth finding out where you stand. We will tell you whether the property qualifies and what may be claimable, and we only charge if there is a claim to make. It costs nothing to ask.