Tax allowance on holiday lets to close, warns advisor

Manchester-based CA Tax Solutions is warning owners of furnished holiday lets about a change in the way rebates are governed.

As of 31 January 2012, owners of furnished holiday lets in the UK and Europe will no longer be able to offset losses made against their total income but will have to offset them against profits from the same business, which effectively signals the end of this tax allowance.

CA Tax Solutions specialises in identifying sizeable tax rebates for owners of commercial property and furnished holiday lets. The firm also said it has doubled its fee trigger with immediate effect. From now on, CA Tax Solutions will only charge a fee if it identifies an additional £50,000 in unclaimed capital allowances, rather than the £25,000 of unclaimed capital allowances it has beem charging fees at to date.

CA Tax Solutions works closely with commercial property owners to generate significant tax rebates and estimates that 90% of them are due a rebate.

Dave Collier, director, CA Tax Solutions, comments: "We've doubled the level at which our fee kicks in because we're confident that with the majority of properties we assess, we will identify a substantial amount of unclaimed capital allowances. Many commercial property owners will be sitting on a potentially very lucrative tax rebate and we will identify it. Anyone with a furnished holiday let should act especially quickly given that this valuable tax allowance will come to an end in early 2012."