Has your Holiday Let been surveyed for capital allowances?
Many self-catering property owners could still be entitled to thousands of pounds in unclaimed tax relief — but time is running out.
Following the abolition of the Furnished Holiday Lettings regime in April 2025, many owners are now reviewing how the changes affect them. What many don’t realise is that there is still a limited window to identify and secure valuable capital allowances before January 2027 deadline.
Capital allowances can often be claimed on qualifying items within a property at the time of property purchase, including fixtures and features that were already there when the property was purchased — such as heating systems, electrics, plumbing, fitted kitchens, bathrooms, lighting and more.
These are items that many standard tax reviews and accountancy processes can easily overlook.
For qualifying owners, securing these allowances now could result in significant future tax savings — but if action isn’t taken in time, the opportunity could be lost permanently.
Capital allowances are a form of tax relief that can apply to certain items within a property used for a qualifying business activity.
For self-catering properties, this can include embedded fixtures and fittings such as heating systems, lighting, electrical installations, kitchen fittings, bathroom fixtures, flooring and other qualifying items.
These are not always obvious at first glance. In many cases, the value is built into the property itself, which is why claims often require a more detailed review and, where appropriate, a specialist property survey.
Following the abolition of the FHL regime, owners may need to identify and claim qualifying allowances in their 2024/25 tax return to carry them forward and use them against future taxable profits.
For many individual owners filing through Self-Assessment, the practical deadline for submitting the 2024/25 return is January 2027. However, deadlines may be sooner depending on ownership structure, particularly where properties are held through a limited company.
This makes it important for owners to review their position well in advance, rather than waiting until the filing deadline approaches.
Capital allowances on embedded fixtures are a specialist area of tax. Many property owners are unaware that a claim may be available, particularly where the fixtures were already present at the point of purchase.
In some cases, accountants may not have enough information to identify the qualifying expenditure without support from a specialist surveyor. This means valuable relief can remain unclaimed, even where the owner has operated the property as a qualifying furnished holiday let for several years.
Self-catering property owners may wish to review:
Taking advice early can help owners understand whether there is a potential claim and what steps may be required before the relevant tax return deadline.
The abolition of the FHL regime has changed the tax landscape for Scotland’s self-catering sector, but opportunities to secure valuable capital allowances may still remain.
At Eureka Capital Allowances, we help self-catering property owners identify unclaimed tax relief that could significantly reduce their tax liability. Many owners are unaware of the allowances available to them – and once opportunities are missed, they may be difficult to recover.
If you own a self-catering property, now is the time to act. ASSC members can arrange a free, no-obligation review to establish whether their property could qualify for valuable tax-saving reliefs.
Visit the Eureka Capital Allowances website or call 02922 803333 today to arrange your free review and ensure you don’t leave money on the table.