Saturday, 21 May 2011

EU Furnished Holiday Let – UK Tax Saving

I was discussing this scheme with a professional connection of mine, who is a UK Chartered Tax Adviser. I asked the question ‘With the Treasury looking for all the savings they can, why hasn’t this scheme been abolished?’

The reply was incredible!

‘So few people claim the allowance (one-off capital allowance) that abolition would cause more trouble than its worth’

Please tell, why aren’t you claiming a benefit to which you are entitled?

This article is for the benefit of UK Taxpayers with furnished holiday let property anywhere in the EU including Spain. Most cases, to date, have been in Spain.

In summary, to benefit you need to answer ‘yes’ to the following four criteria;

  • Is the owner a UK taxpayer?
  • Was the purchase price in excess of £150,000?
  • Is the property a furnished holiday let in the UK or any part of the EU?
  • Is the property let out for more than 70 days a year and available for letting more than 140 days per annum?

Anyone who can answer ‘yes’ to all of these questions may be able to save thousands of pounds in future tax or rebate. Start the ‘ball rolling’ by sending me brief details by email

The Tax Office (HMRC) of course does not advertise that the entitlement is available but every person who qualifies will almost certainly have overpaid tax. It has been estimated that under 2% of UK taxpayers who own furnished holiday let property have made a claim. So, Holiday let owners, 98% of you have a claim to make! But it has to be a very detailed, pre-determined report in the form of a survey.

This benefit is given as either a tax rebate or often a reduction in future tax payable, but normally the latter.

Whilst accountants will do everything possible to claim benefits for their clients, this is a specialist field. The promoters, who provide access to this entitlement, must conduct a very rigorous survey of the property, to standards set by HMRC and presented in a specified format. As the work involved is so detailed and time consuming, you must not just answer the questions above as ‘yes’, there is another filter where the company will discuss by phone or in person, the finest detail to ensure compliance.

Because of this diligence and expertise the company has a 100% success record on cases submitted to HMRC. If you feel you meet the criteria, please email details to me, which will be in total confidence.

The following step by step guide shows how the scheme works and where you fit into it.

There are five steps;

  1. There is a telephone or face to face meeting with the scheme provider to establish that a claim would be valid. So much detail at this step can save lots of time in the process.
  2. The property is surveyed, in great detail, taking lots of photographs (the record number is 400) as these form part of the HMRC method and standards required.
  3. The claim will include hundreds of items within the ‘intrinsic fabric’ of the property, for everything, including the kitchen sink!
  4. The norm is to find capital allowances equivalent to 25% of the property value which can then form part of the claim
  5. When the allowances are calculated and identified in the HMRC format, a Report is completed within a two week time-frame. This is sent to the UK taxpaying property owner for approval before the claim is made to HMRC.


My apologies, there is one step I have forgotten. Before step 1. above please send me details of your circumstances and potential claim.  This means that I can put you in touch with the company promoting the scheme, without delay. Send your details to me by email .

In line with the ‘Comprehensive Spending Review’ make sure that you get your claim made before the Government decides to scrap thhe allowance.