Important!
HMRC Announces Abolition of the Furnished Holiday Let (FHL) Tax Regime
The tax landscape for Furnished Holiday Let (FHL) businesses is set to undergo a significant shift, with HMRC recently confirming the abolition of the FHL tax regime. This change will bring about new rules for property businesses, effective April 2025. Here’s a breakdown of what this means and why it’s essential to act now.
HMRC has clarified how the changes will affect FHL businesses:
- No More FHL-Specific Capital Allowances: Businesses with FHL properties will lose access to the more advantageous capital allowances treatments.
- Introduction of Replacement of Domestic Items Relief: Instead, FHLs will follow the standard property business rules, including relief for replacing domestic items like furnishings.
- Existing Capital Allowance Pools Protected: If an FHL business already has a pool of qualifying capital expenditure, it can continue claiming writing-down allowances on that existing pool.
- Future Expenditures Under Property Business Rules: Any new spending incurred after April 2025 will need to adhere to the property business tax framework.
The upcoming changes may feel overwhelming, but there’s still time to act. Our team of experts can guide you through assessing your capital allowances and planning strategically to make the most of the current FHL regime before it ends.
We are the Capital Allowance specialists
Did you know businesses in the UK typically underclaim their capital allowance entitlement?
We specialise in reducing your tax liabilities, as well as recovering any outstanding tax paid against commercial property in the UK, that you have spent capital buying and/or improving.
Our expert team will work with you to establish whether a claim is possible. If so, we will deal with all aspects of the claim from start to finish, including dealing with HMRC after the claim has been submitted.
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Commercial Property Legal Pack
Whether you are buying or selling a property, our experts are here to help.
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Section 198 Election
A Section 198 Election, of the 2001 Act, is a document that secures the Property Capital Allowance positions...
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Full Expensing
Full expensing (FE) refers to a tax policy that allows businesses to fully deduct the cost of certain capital investments in the year they are made, rather than having to claim for the cost of those investments over several years.
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Catesby IC Property Ltd
Industry: Education & Office
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With over 20 years of experience in Property Embedded Fixture and Fittings (PEFFs) claims, we have created a comprehensive brochure showcasing how accountants can benefit from our capital allowance support. As a trusted partner, we help you deliver optimal results for your clients through expert guidance on embedded capital allowances.
Discover the significant value of PEFF claims, learn to identify potential clients who can benefit, and explore our tailored packages designed to support you in managing these claims effectively. Unlock opportunities with capital allowance specialists and ensure your clients maximise the annual investment allowance benefits.
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We’re an award-winning business and here are a couple of our most recent achievements as a team.
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Best Independent Tax Consultancy Firm
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Finalist Specialist Team of the Year
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Property Tax Specialists of the Year
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Property Tax Specialists of the Year
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Best for Commercial Property Transactions
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Freelance Award for SME R&D Tax Relief - UK
Why Choose Us?
At Capital Allowance Review Service, we specialise in property capital allowance recovery for businesses with unclaimed allowances on commercial properties.
We manage retrospective claims nationwide, delivering significant tax repayments and credits for future liabilities. Our team of experts stays updated on the latest legislation to ensure your claims are accurate and comprehensive, with a focus on identifying embedded capital allowances that may be missed in initial filings.
We maximise claims for a range of reliefs, including commercial property tax relief, holiday let capital allowances, and R&D capital allowances, ensuring businesses benefit from all eligible tax relief opportunities.
Duplicate Item Check
Removing items that have already received tax relief and ensure items are not submitted twice to HMRC.
Free Initial Assessment
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Amended Tax Returns
We amend tax returns so you or your Accountant do not have to and recover any tax refund for the client.
We Deal Direct With HMRC
Our team supports you in all aspects of the claim if ever challenged.