Furnished Holiday Home – allowances of £236,000
This project comprised of the conversion of a former residential property on the Sussex coast into a Furnished Holiday Let, including upgraded heating and hot water systems, a new kitchen and new bathrooms. For more details of this property see - www.luxurycountryrentals.com
Typical claimable items include: Heating systems, door entry, water systems, TV aerial, electrical systems, sanitary fittings and kitchen fittings.
From a total project cost of £975,000 Stuart Rivers Associates generated Capital Allowances of £236,000.
This produces an overall tax saving for a 45% taxpayer of £106,200 for the investor with a first year saving of £12,744 excluding the impact of the Annual Investment Allowances (AIA). If the owner was able to benefit from the full value of the current AIA (£200k) then the first year tax saving would increase to £91,944.