Based on the Isle of Skye these two holiday homes did not disappoint with just over £270,000 in capital allowances identified.
In case you are not aware capital allowances are sums of money you can deduct from your profits in order to lower your tax bill and as you will see below this can be a lucrative exercise if you own a holiday home.
Purchase Price - £295,000
Purchase Date - 2010
Capital Allowances - £116,000
Total Tax Relief - £33,640
New Build Cost - £400,000
Build Date - 2012
Capital Allowances - £156,500
Total Tax Relief - £45,385
Items of plant within these properties that attracted tax relief were kitchen and bathroom suites, heating systems, electrical and lighting installations, window blinds, smoke alarms, carpets, external security lighting and more.
Capital allowances are a great source of tax relief for holiday home owners and by not looking in to this HMRC incentive you are more than likely missing out on average of £160,000 in tax free income.
To find out more download the brochure here - https://www.jamesnazir.com/download-the-guide
James Nazir & Co - Tax Specialists and Fixed Asset Surveyors
0843 005 9711