Zeal’s team is a mix Chartered Tax Advisors & RICS Surveyors (not accountants).

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Zeal’s team specialises in helping holiday let owners uncover the unclaimed capital allowances hidden in the fabric of their properties. 

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In 2024, Zeal identified £42m in missed capital allowances for short-term let owners, unlocking tax savings of more than £8.2m. From January to June 2025, Zeal has identified a further £7.5m in tax savings for owners.  

What are capital allowances?

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Capital allowances are a form of tax relief that allows qualifying capital expenditure to be offset against taxable profits. 

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Whilst most owners have heard of capital allowances and even think “my accountant already claims capital allowances for me”, many do not realise that there’s an extra level of capital allowances that can be claimed on part of the costs they incurred to purchase, build, convert or refurbish their property. A claim that accountants can’t typically make.

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Even though an accountant can claim some capital allowances, it is usually restricted to items like furniture and equipment that you purchase and have a receipt for (‘loose fixtures’).  However, capital allowances can also be claimed on ‘embedded fixtures’ within buildings. 

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Essentially, these are items that would not fall out if the building was turned upside down. Embedded fixtures include heating and electrical systems, water and disposal pipework, kitchens, bathrooms, and more. Even if you incurred expenditure years ago, you could still make a claim now. 

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To identify and claim available tax relief, quantity surveying expertise combined with specialist capital allowances knowledge is required. That’s where Zeal comes in.

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On average, Zeal typically identifies 20%-30% of the original costs incurred to purchase a building as qualifying expenditure. For refurbishment and construction claims, the qualifying percentage can be over 40%! This generates thousands of pounds in tax savings which can be used to mitigate future HMRC payments for years to come. You could also receive a cash rebate for tax that has unknowingly been overpaid.

The FHL tax regime was abolished in April 2025, does that mean it’s too late to claim capital allowances now?

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April 2025 brought into force the biggest industry tax changes in more than 40 years. As part of this transformation, short-term let owners will lose their ability to claim capital allowances. However, even though April has passed, it’s not too late to claim your tax relief entitlement – but time is of the essence!

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The last opportunity for owners to make a capital allowances claim is in their 2024/25 tax return. This must be submitted by January 2026 but can be amended up to 31st January 2027 for individuals (companies may have a little bit longer to claim). Any entitlement not claimed by this final deadline will be lost forever. Capital allowances identified before the deadline can continue to be claimed until fully used up and can also be offset against tax due on ANY property income from April 2025 (including long-term lets).

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IMPORTANT NOTE: If your holiday let is profitable and you are paying tax, it is recommended that you claim your entitlement sooner rather than later! By making a claim now, you could be able to reclaim tax paid to HMRC in the last two years as a cash rebate and reduce or eliminate your tax bills for years to come.

How can Zeal help?

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With unrivalled experience in holiday let taxes and capital allowances, Zeal has become the ‘go-to’ specialists in the sector. This is the reason why they have been selected as the trusted tax partner of several key industry leaders, including Host Planet, PASC UK, and Sykes Holiday Cottages.

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Zeal are offering you: 

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• A Free Capital Allowances review and no-obligation proposal outlining an estimate of any tax benefit you could be entitled to. 

• An all-inclusive Capital Allowances package. 

• Unlike many other capital allowances firms who just prepare a report, Zeal is unique in its ability to do everything in-house, including all the tax calculations (and amending relevant tax returns), submitting the claim to HMRC and dealing with any queries in the unlikely event they arise.

• Fully compliant process and a blueprint report that has been pre-approved by HMRC and VOA. This enables Zeal to complete claims quicker than most other firms. 

• Risk-free and secure 5* service.

• Zeal operates on a success fee basis with no fixed or upfront fees. In many cases, their fee is covered by refunded tax previously paid to HMRC. They also offer a free survey to identify and value all qualifying items (charged at £1,000+ by other firms). Furthermore, Zeal is rated ‘Excellent’ on Trustpilot and 100% of submitted claims have been approved by HMRC.

• Professional Aftercare: Zeal provides a professional aftercare service, included in your fee. This offers clients and their accountant any support needed to apply tax savings to upcoming tax payments and access to additional advice down the line when required (for example, if the property is sold in the future).

• Access to Zeal’s FHL Tax Resource Hub – for free! An exclusive collection of free tax material all in one place. From tax articles, help sheets and videos, to guides and e-books, topics cover everything from the Tax Changes for FHL owners, Making Tax Digital, Tax-Deductible Expenses, structuring an FHL business tax efficiently, EPC tax implications, plus more, all at your fingertips.

 

Get in touch:

 

Arrange a free capital allowances review
Access Zeal’s Tax Resources Hub

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01633 742243  |   hostplanet@gozeal.co.uk