If you own a Furnished Holiday Let (FHL), Houses with Multiple Occupancy (HMO) or a UK-Based Commercial Building you are entitled to claim capital allowance tax relief against the plant and machinery contained in these buildings as set out in the 2001 Capital Allowance Act.
The capital allowances including fixtures and fittings can amount to up to 20% of the original property value. Claims can be made even if the property has been owned for a number of years.
This is not a loophole – Capital Allowances are there to be legitimately claimed.
However, the Government is currently consulting on shortening the period when this expenditure has to be recognised to 2 years effective from April 2012. Therefore, you should act now as you may be entitled to large refund of tax and after April this could be lost.
This is a specialist area which requires detailed knowledge of tax law which is why HMRC believe that only 4% of those entitled to make a claim actually do so properly.
If you would like more details regarding this and making a claim please contact our specialist, Sarah Curzon firstname.lastname@example.org for further information.