Capital allowances are a valuable form of tax relief available to anyone incurring capital expenditure buying or building commercial property. As a business you can claim tax allowances, called capital allowances, on certain purchases or investments, which means you can deduct a proportion of these costs from your taxable profits and reduce your tax bill. Capital allowances are available when a commercial property is acquired for use in the course of a trade or property investment business or when commercial new-build, extension or fitting-out/ refurbishment works are undertaken. In addition to traditional commercial properties such as factories, hotels, offices etc. furnished holiday letting (FHL) properties also qualify for capital allowance tax relief.

Following the April 2009 Budget the tax advantages of Furnished Holiday Let (FHL) status have been extended to cover properites within the European Economic Area (EEA). For the first time, owners of European FHL's can claim capital allowances. There is only a limited time period to take advantage of this opportunity so owners must act swiftly. If your FHL is situated in the EEA and is available for holiday letting and you are a UK taxpayer then you are just a few steps away from a potential tax rebate.

A property bought for £200,000 should expect capital allowances,calculated by HMRC authorised assessors, in excess of £50,000. That would command a tax deduction/rebate of £20,000 for a higher rate tax payer, £12,500 for a Ltd. company or £10,000 for a basic rate tax payer.

Property4gain.com are working in conjunction with a team of assessors to bring this valuable service to all overseas property owners resident in the UK. If you own a property, whether unencumbered or mortgaged, which meets certain criteria for holiday rental in the EU you are entitled to claim for capital allowances. It is important to recognise, however, that this is your right, not a privelege. If you are entitled to claim it would seem remiss not to do so.

To determine whether you have a valid entitlement it is vital to contact us as soon as possible. The government are planning to amend the FHL rules by 2011, both for UK and EU based FHL properties. Don't miss out on a potentially huge tax concession.