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Ashton & Carrington
Capital Allowances · Holiday let

£76,410 of allowances, hidden in a city-centre flat.

How a 62 m² leasehold short-let apartment produced a five-figure claim, and why the window to make one is closing.

£76,410
Qualifying plant & machinery
30.0%
Share of purchase price
up to £34,384
Potential tax saved

The engagement

Our client bought a 62 m² leasehold apartment for £245,000 and let it as a qualifying furnished holiday let. It had been a private home, so no prior claim existed and the full embedded plant was theirs to claim.

Our approach

  • Desktop analysis plus a single site survey
  • Reconstruction costs from BCIS (RICS) and Spon's data; land value to VOA benchmarks
  • Apportioned to HMRC's formula under CAA 2001 s.562
  • Filing-ready report with statutory basis and pool allocation

The result

Main rate pool
£33,620
Special rate pool
£42,790
Total qualifying plant & machinery
£76,410

HMRC's apportionment formula

Q = P × A ÷ (B + C)

Q qualifying expenditure · P purchase expenditure · A reconstruction value of plant · B reconstruction value of building · C bare site value.

What that's worth in tax

Basic rate, 20%
£15,282
Higher rate, 40%
£30,564
Additional rate, 45%
£34,384

Relief is given through writing-down allowances over time; where the Annual Investment Allowance or full expensing applies, much of the benefit can land in year one.

A real client engagement, anonymised to protect confidentiality. Figures do not constitute tax advice; outcomes depend on individual circumstances.

The client assumed a leasehold flat meant no claim. The claim was £76,410.

More outcomes

Related case studies.

Real client engagements, anonymised to protect confidentiality. Figures do not constitute tax advice; outcomes depend on individual circumstances.

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