Latest / Host Planet: Airbnb, Holiday Let, and Vacation Rental Insights / Budget Hits Holiday Let Owners | Here's What Changed

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Budget Hits Holiday Let Owners | Here's What Changed · Host Planet: Airbnb, Holiday Let, and Vacation Rental Insights

0:00
We've just finished the case for somebody who's, believe it or
0:02
not, use a big accounting firm. We've got 15 holiday let's,
0:05
we've worth millions of pounds and haven't paid their cup
0:08
allowances. And let's just say we've saved
0:10
them a hell of a lot of money. Get in touch with a team at Zeal
0:13
to check that you haven't got any unclaimed cap allowances.
0:16
What are the key takeaways from the UK budget?
0:20
Will your business rates be going down?
0:22
And why do holiday let owners need to claim their capital
0:26
allowances right now? Matt Jeffrey from Zeal Tax is
0:30
the special guest on the House Planet podcast, and he'll be
0:33
answering all these questions and more on today's show.
0:41
Matt, thank you for joining us on the Host Planet podcast.
0:44
What are the key takeaways from the recent UK budget which are
0:48
relevant for short term rental owners?
0:52
Oh, James, thanks for inviting us you along again for, you
0:56
know, the podcast. I know the tax ones tend to go
0:59
down well and not everybody likes to pay it, but if we can
1:03
find some ways to reduce it then, then that's great.
1:07
Yes, we had a budget. Was it last week?
1:09
Now that time flies by, but I think it was was a net where
1:12
Rachel Reeves announced some tax changes.
1:16
Nothing really major, however you know there was a change in
1:22
income tax rates for property income which holiday let's will
1:27
be classed as property income from April 2025 as we know.
1:30
So what that means is that they're going to add an extra 2%
1:35
on the income tax rates that will charge to individuals that
1:39
own and run their property business in their personal name.
1:42
So whilst 2% doesn't sound like a great deal, actually it's a
1:47
10% rise. So if you're a 20% taxpayer,
1:50
you'll now pay 22%. If you're a 40% taxpayer, you'll
1:54
pay 42%. Now one of the questions we've
1:57
been asked quite a bit since this has come out is do you pay
2:00
2% if you're in the nought percent category?
2:03
Well, the answer to that is no. So if you are, if your profits
2:08
are below 12,500, including any other taxable income that you
2:12
have, then you will still pay 0 tax.
2:15
So it will impact those who are paying tax at 20 percent, 40% or
2:20
even 45% taxpayers will go up to 47%.
2:24
So that was probably the key change that will impact holiday
2:29
let owners or directly impact them.
2:31
I suppose it's worth mentioning the corporation tax rates didn't
2:35
go up. So if you own, you'll probably
2:37
run your business through a little, you know, sorry, your
2:41
company owns the property and you run the business with a
2:44
limited company, then that will have no impact on your, the tax
2:47
you pay on your profits. However, dividend tax rates have
2:52
increased, so they've gone up by 2% as well.
2:56
And that's 2% on the basic rate and 2% on the higher rate.
3:01
But the additional rate has stayed the same.
3:03
Now correct me if I'm wrong, but basic rate is 8.75% and it's
3:09
gone up to 10.75%. And the higher rate is, is 2%
3:12
more than what it was previously.
3:14
That means so for those people who you know, maybe not
3:17
understand what dividends are dividends are so you pay
3:21
corporation tax on your profits and then the profits that you've
3:25
got in the company, if you want to take them out into your
3:27
personal bank account, then you have to pay dividend taxes to to
3:30
take them out. So it would be fair to say that
3:34
you know, companies or owners of companies will be impacted.
3:39
However, there's obviously different strategies of
3:43
extracting money from a limited company.
3:45
So maybe paying a dividend or re looking at your remuneration
3:49
strategy or you take less out of your company might be a work
3:52
around there. So, you know, on a positive
3:55
corporation tax rates haven't gone up, but obviously income
3:57
tax rates going up is an ideal. The other thing which has caused
4:02
quite a lot of stir is the fact that personal allowances aren't
4:07
going to be rising anymore until 2031.
4:12
So it's been sort of re referred to as a stealth tax because, you
4:18
know, in their manifesto the government said that they won't
4:20
be putting up any income tax rates.
4:22
Well, they did with the property and dividends, but your trading
4:27
income or your employment income that they're not affected.
4:31
But by not increasing the purse allowance and actually
4:34
increasing minimum wage and increasing state pension.
4:39
What that means is that people who didn't pay tax previously
4:42
will now start paying some tax, 20% and those who were in the
4:46
paying 20% might get pushed up into the 40% tax bracket.
4:50
So it's a way of increasing income tax without actually
4:53
increasing tax rates. So you could say that that
4:55
they're clever in one way or you could look at it from a
4:58
different angle and say that they're backtracking on, on what
5:01
what they said they're going to do.
5:02
So they're the sort of they, they were sort of the main key
5:07
tax changes affecting short term net owners.
5:10
Now we weren't hoping for too many changes.
5:12
We didn't get the VAT changes to VAT thresholds, which I know a
5:15
lot of people were a little bit nervous about that.
5:17
So, so I think if we if we take a positive spin on this, you
5:22
know, flat factuals are staying the same.
5:25
There is a little bit of extra income tax to pay, but you know,
5:30
it could could have been worse. I think, you know, I think a lot
5:32
of people come away thinking wasn't too bad.
5:35
So there are other sort of non tax benefits as well.
5:42
Do you want to cover them now as well?
5:44
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sorted with postfully. We'll just go over a couple of
7:03
things. I mean, the in relation to the
7:05
dividends like you mentioned there, you were right in saying
7:07
it's gone from 8.75% for basic rate taxpayers up to 10.75.
7:13
The higher rate is 33.75% to 35.75%.
7:18
So if you are having a limited company and paying yourself
7:22
through dividends, that will have an impact.
7:23
And I think just one thing to mention, as you kind of alluded
7:26
to, it's a 2 percentage point rise, which which doesn't sound
7:30
like a lot, but actually is more.
7:33
I wonder if you have kind of an example of where you can share
7:36
kind of like how much it has it has actually gone up for some
7:39
people. Yeah, exactly.
7:40
Well if we keep the numbers simple because none of us like
7:42
to amass even even U.S. tax advice and accountants, we've
7:45
got computers to do it for us now.
7:46
But let's say your profits were £10,000.
7:50
Under the old rules you would have paid 2000 lbs tax.
7:53
Under the new rules you'll pay 2200.
7:55
So that in mathematical terms is a 10% increase.
7:59
So an extra £200 on 2000 is £200 is £200 extra.
8:04
It's worth pointing out, I haven't didn't mention it, that
8:06
those these rules don't actually come into play until January
8:10
2027. For income tax, the dividends
8:13
will apply from from 2026, but income tax rates, the first time
8:17
you'll notice the extra tax you'll pay will be in January
8:21
2029, believe it or not, because it's tax year 2728.
8:26
So that finishes in April 2028 and then you'll have until
8:28
January 2029 to pay your tax. So, you know, there's this,
8:32
there's a couple of years ago, who knows what might what
8:35
happened in between them as well.
8:37
So, yeah, it's not something that's going to have an
8:39
immediate impact on the holiday owners, but in time, you know,
8:43
it will be, you know, another added cost to to contend with.
8:48
Yeah, and you're right in what you're saying there about the,
8:50
the personal allowances as well. I mean, this, this is a massive
8:53
stealth tax. And the, the main point with the
8:55
personal allowances is if they would have gone up at the rate
8:58
of inflation, that 12,500 lbs would be a lot higher.
9:04
The 20% rate would be a lot higher, which is currently at
9:06
about just over 50,000 lbs, I think.
9:09
And you know, the kind of middle earners keep getting dragged in
9:13
to this 40% tax rate. And, and, and this is the issue
9:16
and, and if you, if you do have a job and property income as
9:19
well, it's likely that you are going to get dragged into this
9:22
40% rate, right? Yeah, I, I, I, I was just
9:26
looking at the statistics, but it was on average the, the
9:32
minimum wage has gone up by 7% over the last five years and
9:37
obviously state pensions will now increase above the the
9:42
threshold. Interestingly, the the
9:44
chancellor said that they weren't going to go after
9:47
pensioners for the additional tax.
9:48
Now to me, that's going to cause a bit of, you know, a few issues
9:53
because if you're not going to go after pensioners while you're
9:55
coming after me. So with a little of the Rex
9:57
attacks. So again, you know, maybe some
9:59
of them haven't quite funny thought through, but yeah.
10:04
Yeah, it all goes back to this debate about working people,
10:07
doesn't it? Who is a working person?
10:10
We, we, we, we, we won't get into the politics of it.
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for further details. I think what we should probably
11:33
focus on a little little bit though is having property in
11:36
your personal name or a limited company and kind of dig down a
11:40
little bit there. So if you are somebody out there
11:43
and you've got property in your personal name, should you be
11:47
thinking about transferring it into a limited company?
11:51
Yeah. I, I think, you know, it's a
11:53
question that we get asked a lot at the time and, and we do carry
11:57
out a sort of a consultation that we'll sort of go through in
12:03
everybody's individual circumstances and try and plot
12:05
out whether or not there is a benefit to incorporate in your,
12:09
that's the terminology incorporating.
12:11
So moving your, your property and business from your personal
12:14
name into a limited company structure.
12:16
Now, for some, there's some really great advantages of doing
12:19
that. You know, it can mean that
12:21
you're going to pay less tax every year because you know,
12:24
particularly if you've got mortgages and you know you're
12:27
not companies aren't affected by the restrictions on mortgage
12:31
interest deductions. You know, if you've got other
12:34
income elsewhere, then you know, there there's certain categories
12:37
of of owners that you know, really would benefit from an
12:40
incorporation. Generally they're, you know,
12:42
they've got multiple units. They are the earnings or profits
12:47
including other forms of income are over say 70 thousand 75,000
12:52
lbs. So there are these, you know,
12:55
certain owners group that could really benefit from an
12:58
incorporation. However, you know, there are
13:02
another and probably a larger proportion to be honest, that
13:05
wouldn't really see any benefit from a limited company.
13:09
I'm thinking more there's some people who don't have a
13:11
mortgage, don't have much other income, you know, these types of
13:16
things. So it's a case by case basis,
13:19
but there are some significant benefits and you know, outside
13:22
of just your normal annual taxes use unlimited company structure
13:28
can potentially reduce your capital gains tax when you come
13:32
to sell your properties because the transfer from personal to
13:36
company ownership will restart that clock for capital for
13:39
capital gains tax. But also it will give you some
13:42
flexibility to plan for inheritance tax as well.
13:45
And what I mean by that is that you can either create additional
13:49
classes of shares which can be owned by your dependents, your
13:53
children potentially where the growth and value of your
13:57
business during your lifetime will then be in your children's
14:00
estates rather than your estate, so-called a family investment
14:04
company. So quite a lot of people are
14:05
looking at going down that route.
14:07
And the other thing is you can, you can gift some of those top
14:10
class of shares, the A shares to your dependents during your
14:14
lifetime. So you can slowly move it out of
14:17
your estate. So yes, you know, for some, and
14:20
I think if you're, you know, lots of the if you're coming new
14:23
into this industry, generally probably take you as a limited
14:27
company is the right thing to do.
14:31
Again, pros and cons of both, but I think it probably future
14:34
proofs you a bit more. So, you know, if you're planning
14:37
on scaling up over time, then you know, and when even if
14:40
that's not just holiday let's, that might be, you know, buying
14:43
a commercial property or a binder left or whatever it might
14:45
be, having that limited company structure will probably future
14:49
proof you against tax changes, which tend to always be targeted
14:52
at the individual rather than the company.
14:55
So my voice is that, you know, if you think you're going to be
14:58
affected by, you know, all these changes, then, you know, maybe
15:02
reach out to Zeal and we can give you a free consultation to
15:05
see whether or not it's worth you exploring an incorporation.
15:11
And alternatively, you know, those who are coming into the
15:14
industry probably using a limited company would be
15:16
sensible, you know, a long term tax planning strategy.
15:21
Definitely, yeah. Speak to the experts and we'll
15:23
put all Zeal's contact details in the show notes.
15:26
One thing to mention in relation to people who want to go from
15:29
personal name to limited company, what's the stamp duty
15:33
issue here? Yeah, that's that's something
15:36
that comes up a lot. And so when you transfer your
15:39
properties or property for limited company, it's treated as
15:43
a sale at open market value. So that would naturally trigger
15:47
capital gains tax and stamp duty.
15:50
Now if you're structured correctly and you do the
15:52
transfer in the right way, it is possible to not have to pay
15:57
stamp duty when you transfer capital gains tax as well.
16:01
So individuals transferring properties to company will
16:04
likely be subject to stamp duty charges.
16:08
If you're a partnership or an LLP transfer into a limited
16:11
company, then there is no stamp duty if you transfer, if the
16:15
partners are transferring to a company that they own.
16:18
Now, if you own your properties in your own name, but maybe
16:22
you've got some family members who are interested in joining
16:24
the business or already get involved in the business, then
16:27
actually forming a a partnership with them.
16:30
You don't have to legally change the ownership of the property.
16:32
It still stays in your name until you obviously do the
16:35
incorporation, but you could form a partnership, you know, if
16:39
there's a commercial reason to do so.
16:41
And then that would give you the, you know, the, the tax
16:43
benefits going forward. So as I said, you know,
16:45
incorporation is not for everybody, but you know, for
16:49
those that are either meet the criteria now or can put things
16:54
in place so that they can in the future, then then you know that
16:58
it's, it's definitely an option, a restructuring option that they
17:01
should consider. Definitely, yeah.
17:03
Speak to the experts, as we said.
17:06
Was there any positive news from the budget?
17:11
You could argue that I think the business rates were were
17:16
highlighted as a as a positive change.
17:19
So just to go over what happened there, when we had COVID, the
17:27
hospitality sector were able to get 100% business rates relief.
17:33
And then in more recent years, that relief has been tapered
17:36
down and prior to the last budget, those people who were
17:41
subject to business rates, and we'll come back to that in a
17:43
second, we're still able to get a 40% reduction in the
17:48
hospitality sector in comparative other sectors.
17:51
So you know, your hospitality property would pay 40% less
17:54
business rates than the office next door.
17:56
So now in the budget they announced that that they're no
18:00
longer providing this 40% reduction for the hospitality
18:04
sector, but to combat that they are reducing the, the values of
18:10
the multipliers, which would accept how much business space
18:12
you pay. And they've been reduced sort of
18:14
in line with with what that 40% was.
18:16
So that was highlighted as a, as a benefit to owners as well as
18:22
you know, let's taking that step back to small business rates
18:24
relief. So there's something called
18:27
small business rates relief. From what that is, is that if
18:29
your rateable value of your property in England is less than
18:33
12,500 and Scotland and in Wales 6000, then you can qualify for
18:39
small business rates relief, meaning you don't pay any
18:41
business rates. So the bit I talked about
18:44
paying, you know, the 40% reduction etcetera, was for
18:46
people who didn't qualify for small business rates relief.
18:49
So that might be because you've got multiple properties, you've
18:52
got, you know, a really big property with multiple units
18:55
etcetera. But you know, a lot of the
18:57
owners that that we speak to and are probably listening to this
19:00
show would, would qualify for small business rates relief.
19:04
And actually in the budget, what they announced was that if you
19:08
have had another property that would qualify for business
19:12
rates, they won't, they won't remove the small business rates
19:15
relief for a period of two of two further years.
19:19
So what that means is that often if you've got 1 and you add the
19:22
second one, they're likely going to pay business rates.
19:25
But with the new rules that they've announced, there will be
19:27
a window where you won't have to pay for the 2.
19:29
So all positive news, but with every positive thing there's
19:34
always a negative. And what has been highlighted to
19:38
the government is that whilst they've done these excellent or
19:42
what appears to be, you know, excellent things by reducing the
19:45
multiplier and given the sex and small business rates relief.
19:48
Well at next year there's a new set of of ratings list coming
19:53
out. So every three years they
19:55
provide a ratings list and the ratings list is part is the data
19:59
basically from where they work out your rate of value.
20:02
Don't ask me how you calculate rate of value.
20:04
It's a complex formula, but it's based on things like market
20:07
rents and this, that and the other.
20:09
But anyway, they will count your rate of value.
20:11
Then they apply it to a multiplier, but the multiply has
20:14
been reduced. Now the issue is that we're
20:17
expecting the new list that comes out in April 2026 to for
20:22
the the values to be increased by approximately 30% is is
20:26
what's been published. So that means that actually the
20:30
benefits that that the government have announced to try
20:33
and help the sector are going to be outweighed by these new rates
20:37
that new listing rates is coming out.
20:39
So past are actually doing a big piece on this.
20:43
So they're, they're the people who are consulting with the
20:49
experts and taking it to Parliament to make them aware of
20:53
what the changes are. So they will be providing some
20:57
further information on that. So a plug for Paskif you know,
21:00
if you're not a member, join them, support them, they're
21:03
working on your behalf and they can give you that all that extra
21:06
information that you know, that you're not going to get from an
21:08
accountant, you're maybe not going to get online as well.
21:11
So, you know, if you're not a member of past, join them.
21:14
If you are member of past then then they will be, if they
21:17
haven't already be providing some more information on the
21:20
business. This is for exchanges.
21:22
Yeah, I've seen a few posts about this online and I think
21:25
there's a link where you can go and check exactly what your
21:28
rateable value is and what you're going to be paying.
21:31
And quite a few people were posting on social media saying,
21:34
oh, mine's gone up 20%, mine's gone up 30%.
21:37
So yeah, people I think are bracing themselves.
21:39
So yeah, definitely check out Pask.
21:41
They've got all the the latest information on this and we'll be
21:43
able to help you if you've got any concerns in that area.
21:48
OK, then. So another thing we need to
21:50
mention is that the government has been running campaigns about
21:53
making tax digital. What do holiday let owners need
21:56
to know about this? Yeah, probably the hottest topic
21:59
at the moment, you know, the one that we're getting asked about a
22:01
lot. So as holiday let owners, you
22:06
will, you're treated as as as as as as landlords really now.
22:12
And so if your income from your, from your let's is £50,000 or
22:20
more in the tax year that we're in now or sorry, actually the
22:24
tax year, they're going to base it actually on on last year's
22:28
tax year. But obviously if you know your
22:29
results by right to the end of April, if your rental income is
22:33
£50,000 or more than you have to start doing making tax digital
22:37
from 2027 it will go down to 30,000 turnover and for 2026
22:43
it's going to be down to 20,000. So what does it mean?
22:46
Well, actually it's not as complicated or as, as, as it
22:51
sounds. What the government are trying
22:53
to achieve is, is they're trying to get people onto a, you know,
22:57
to, to start keeping the records in a digital format.
23:00
When I first started in tax 27 years ago, I can remember
23:04
watching people walking across a car park with banks, carried
23:07
banks full of invoices. We in the last sort of 10-15
23:11
years, we've moved on to spreadsheets, which are much
23:13
easier and quicker to, to process.
23:16
But you know, I think the next step is to be digitalized.
23:19
And that means, you know, using some kind of digital software or
23:23
keeping the records in a format that can be digitally sent to
23:28
HMRC or whatever it might be. So if you, if you do meet the
23:32
requirements and I throw that, let's just let's just cover off
23:36
who, who doesn't have to do it. So if you are a partnership or a
23:41
limited company, you don't have to do it.
23:43
If you're, if you want a property jointly, say with your,
23:47
you know, spouse, civil partner or just a business partner and
23:51
your, your share of the rental income is less than 50,000.
23:55
So let's give the example husband and wife, 60,000 lbs of
23:58
rental income. So that's 30,000 each.
24:02
You wouldn't have to do making tax digital until 2027.
24:07
Now all it means is that you either use a QuickBooks 0 free
24:12
agent, whatever, which whichever one we don't you know, have got
24:15
any preference to. They're all pretty much the
24:17
same. Every quarter you need to press
24:20
a button and then say these are my income and expenses for that
24:25
quarter period. They will not be audited by HMRC
24:29
and they will not form part of your final tax return.
24:32
So at the end of the year, you will still do your tax return as
24:34
normal. And if the figures are different
24:37
than what you submitted for whatever reason, you might have
24:40
to give a refund. There might have been, you know,
24:42
a cost that that was missed or whatever it might be.
24:46
It would be only those figures that HMRC will will be looking
24:49
for. So they might ask for why, you
24:50
know, and I think that that's what we asked and, and you know,
24:53
the answer really is that they just want to get people into the
24:56
habit of using digital softwares.
24:59
So just, you know, if you're out there thinking I'm too old for
25:01
this, My, my, I don't even get a Wi-Fi signal where I am.
25:07
You know, if, if you think that actually, you know, you don't
25:10
think you'll be able to do this, you can apply for an exemption
25:13
to HMRC. You know, they've used things
25:15
like age, Wi-Fi signal, these types of things.
25:19
So you can apply for exemption just Google making tax digital
25:23
exemptions, see if you fit into it and you know you can then
25:27
apply for an exemption. But other than that, you know
25:29
there is going to there, there is things called bridging
25:32
software out there. And what that is, is essentially
25:35
an Excel, an Excel spreadsheet which has got these sort of
25:40
special macros or whatever they're called built into it.
25:43
That enables you basically to drag your income for the three
25:46
months into a into a box for income and your expenses into a
25:50
box for expenses and that's it. So whilst it's not ideal and
25:55
it's just another thing that you have to do and potentially
25:58
another little cost to add, actually, if you can use an
26:02
accounting software, get into the habit of doing it, it will
26:06
reduce your accounting costs at the year end because you'll have
26:09
it all there for you. It will also give you the
26:11
ability to track your, you know, the performance of your holiday,
26:14
let on a monthly basis, on a weekly basis, you know, you'll
26:17
make sure that all your records are in one place.
26:20
You can take photos of your, of your receipts and it sends it to
26:24
the software and that's it. You can bin it then, you know,
26:26
so there's, there's lots of good reasons for doing it and that's
26:29
why HMRC want people to start doing doing that.
26:32
So, so yeah, it's, there are, there's, there's plenty of
26:37
information out there on making tax digital, but I think the
26:39
message that we're trying to get across is that don't panic.
26:42
It's not, you know, it's not a particularly difficult task and
26:48
you've got some time to, to prepare for it.
26:49
If even if you're, let's say you've got to do it from, from
26:53
April next year. Well, actually your first filing
26:56
will be 3 months after. So it will be end of June or
26:59
whether it is, so you've got a bit of time and, and they have
27:02
said that they're not going to be charging penalties at the
27:05
start of the 1st 12 months. So that isn't a reason to not do
27:08
it, but it is a reason it does give you some comfort.
27:11
If you get it wrong or you get a bit late to the party, then you
27:15
know there shouldn't be any financial consequences.
27:17
But trust me, they won't last long for doing that.
27:20
And if if they know you're willingly not trying to do it,
27:23
then I suspect they'll still charge you a penalty.
27:24
So yeah, I think the message is to try and get on, get on top of
27:28
it as soon as possible. We will be releasing Zeal A.
27:33
There is already something in the resource hub which is
27:35
available to host planet listeners that about making that
27:40
digital. But we're in the process of
27:42
we've been trying a few of the different softwares and we're
27:45
going to just release A blog on that.
27:47
So give you an idea of in the different ones out there, cost
27:50
effectiveness, usability, that type of stuff.
27:52
So that should be out sort of early in the new year.
27:55
Great. And we'll, we'll put some links
27:57
to that on House planet channels.
27:59
I'm just thinking, I'm sure there'll be people out there
28:00
thinking, will my accountant just deal with this?
28:03
And I'm probably one of those people.
28:06
I think ideally it depends, you know, it's, I've spoken to a few
28:09
accountants and, you know, there's a range of what they're
28:12
doing summer, taking the opportunity to charge more to,
28:15
to, to do some more work. Others are encouraging their
28:19
owners to get onto and helping them to get onto accounting
28:22
software. Because if I own an accounting
28:24
practice, I'd want all my clients to be on, on a digital
28:27
account software. So I'd be, I would be taking
28:29
this as an opportunity to get people onto accounting software
28:32
because it makes the accounting's job easier.
28:35
It can reduce your fees. But yeah, you know, don't rely
28:37
on your accounting to do it for you.
28:39
Certainly not, you know, don't even rely on them to make make
28:42
to to be letting you know that you need to do it.
28:45
Whilst you might think you're important to to to and you might
28:48
be important to to your accounting practice.
28:50
You know, they'll have lots of own lots of people who probably
28:53
not just holiday owners. And so, you know, they might
28:56
send out the communications and if you don't read them, they're
28:58
not going to be, you know, they may or may not be ringing you up
29:01
and saying don't forget to do this.
29:02
So take responsibility. As UK taxpayers we have to take
29:06
our own responsibility for things.
29:08
That sounds good. OK, then let's finish with
29:11
capital allowances then there'll be people filling in their tax
29:16
returns. And also we need to be clear
29:19
that capital allowances, they are coming to an end.
29:22
So I think quick overview, what are they?
29:25
And if you're a holiday let owner and you haven't claimed
29:27
them, why do you need to be getting in touch with Zeal soon?
29:31
Yeah, sure. In, in, in real quick times,
29:34
most owners of holiday let's you would have claimed some cap
29:38
allowances and you think we've probably claimed our cap
29:40
allowances. The key message is that there's
29:42
an extra layer of cap allowances on the purchase, refurbishment
29:46
or construction costs that you've incurred.
29:49
Even if you incurred them 51015 years ago, there's a there's a
29:52
small window of opportunity now to be able to identify any
29:56
missed claims and claim them in your 2425 tax return.
30:00
For those of you already paying tax, excuse me, I've paid tax in
30:04
the last couple of years. There's no better time to be
30:06
looking at your cap allowances now because you can effectively
30:08
go back a couple of years, get some cash from payments.
30:13
We've just finished a case for somebody who's, believe it or
30:15
not, use a big accounting firm. I've got 15 holiday let's with
30:18
millions of pounds and haven't claimed their cap allowances.
30:22
And let's just say we've saved them a hell of a lot of money.
30:24
So don't assume or presume. Never assume or presume.
30:29
Get in touch with the team at Zeal to check that you haven't
30:31
got any unclaimed cap allowances.
30:33
It's a quick thing to do and can save you 10s of thousands of
30:36
pounds. So I know we keep going on about
30:38
it, but there really is a small window now.
30:41
And you know, if you've thought about it or been thinking about
30:43
it, now is the time to act. Yeah, I mean the, the vast
30:46
majority of holiday let owners in the UK have not claimed their
30:50
capital allowances. And honestly it's just going to
30:53
mean they're going to pay a lot more tax.
30:55
So Matt, just tell us like when, when is the actual deadline?
30:58
When do people have to get in touch with you to have that
31:01
discussion about capital allowances if they haven't
31:03
already? Yes.
31:03
So the hard deadline will be January 2027 and that's the
31:07
deadline to amend your 2425 tax return as as individuals, if
31:11
you're a limited company, it's going to be around early 2027 as
31:15
well, might even be end of 2026 for some.
31:19
But if you're doing your tax things at the moment and you've
31:22
got tax to pay or potentially you've got tax to pay, get in
31:25
touch as soon as possible so you can make sure that we can get
31:27
the claim done by the end of January.
31:29
Definitely make it a New Year's resolution if you have to claim
31:33
your capital allowance. We could not be clearer, Matt.
31:37
It's been a real pleasure. As ever, thanks for joining us
31:40
on the Host Planet podcast. Always a pleasure, James.
31:42
Great to chat to Matt Jeffrey there from Zeal Tax.
31:45
Make sure you claim your capital allowances right now.
31:49
That's just about it for today's episode.
31:51
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32:33
Until next time, happy hosting.