What Are Capital Allowances?
Capital allowances let FHL owners offset the costs of qualifying assets against their taxable income, resulting in lower tax bills. Qualifying assets include furniture, kitchen equipment, appliances, and even carpets. This relief can be incredibly beneficial, as it reduces your taxable profit and ultimately boosts your bottom line.
Why This Is the Last Chance to Claim
From April 2025, capital allowances will be limited to traditional commercial properties, excluding FHLs. This means that if you don’t act now, you could miss out on substantial savings. Many FHL owners are unaware of how much they stand to gain from claiming capital allowances, making it critical to consult an expert to ensure you’re maximizing all eligible claims.
Real-Life Example : Potential Savings on a £500,000 Property
Imagine you own an FHL valued at £500,000, with around £125,000 spent on qualifying fixtures and fittings. For a higher-rate taxpayer, this could translate to as much as£50,000 in tax savings. This illustrates why acting before April 2025 is essential; you could save tens of thousands of pounds by claiming now.
Take Action Now
Don’t let this opportunity slip away. Book a free consultation with Adam Meldrum, our FHL tax strategy expert, to assess your property and identify your savings potential. Adam’s expertise ensures you capture all eligible reliefs while avoiding common pitfalls.
