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Capital Allowances with Buy to Let properties?

Hi - a client has sent me a couple of articles about a company offering to claim capital allowances on part of the purchase price of buy to let and furnished hol accommodation.

I wondered whether this was a case of establishing the cost of integral fittings when buying say an unfurnished property and claiming this as plant?  The article says that the particular allowance has only been available since December 2008 but for the life of me I can find no reference to it anywhere.

Anyone know what this is all about?

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dubious

 

We have had a couple of landlords ask about this and it surrounds claiming AIA for "integral features" in HMOs. It seem to rely on an interepration of the work 'dwelling' that is not in any legislation, but merely in a statement HMRC issued at some point. 

Its pretty thin IMO.

Edited to add - for holiday let properties it follow the same rules as for commercial property, and its quite possible if you can get the survey etc all lined up. Probably limited use however as costs vs tax back is probably not going to be huge.

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By blok
23rd Sep 2010 14:24

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I have always been under the impression you cant claim CA's of any kind on a "normal" property rental business. (except for pehaps a hoover or something like that!)  

In my mind the buy to let is a normal property buisness. 

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Found it!

Many thanks - yes It's CAA 2001 S33A, inserted (crow-barred in) by FA2008, which seems to stand alone as far as the normal (S35) CA expenditure qualification rules are concerned.

There are various views & comments on the web and I think the case in question may be over which bits of student accommodation are regarded as a dwelling. 

I'm telling the client to not do anything but wait for more articles on the topic in his "Property Investor News" where a sponsored article appeared last month.

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By blok
23rd Sep 2010 16:21

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Paul, do you have acces to ciot monthly magazine.

There was a good article on there recently, this month or last month i think.

If not I can copy you in. 

It is worth a read.

 

 

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BLOK

Hi there - I do have it thanks very much, the excellent CCH helpline discovered it for me. A plug for them & thanks to you

P

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By blok
23rd Sep 2010 16:46

CCH

Hi, yes I too use the CCH a lot. 

They are indeed v good mostly.  although the girls in vat can be rather abrupt but are also v good so I can let them away with that.

The CA's question you raise is one which at the moment there is no definitive answer to.

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23rd Sep 2010 16:53

CCH

I am interested in the praise of CCH

We used them at a former practice and moved away due to cost and reliabilty on some more complicated areas (used WJB Chiltern on that one)

What sort of cost is it these days for one person sole practitioner for the helplines ?

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CCH

Hi DD, I've used their online services for years as well as fee protection and the helpline comes "free" with both.  The online stuff is great for most things but as & when I hit a brick wall or, more likely, too many open ends I call them and solve the issue in minutes.  I probably only call 6-8 times a year but they have yet to let me down.

In the past, when I needed definitive written advice on large & involved issues then I too used Chilterns (are they now part of BDO?) but in that case it would always be with client approval as they paid the "healthy" fee.

Also used PTP for a time, a lot cheaper than Chilterns helplines.

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By blok
25th Sep 2010 09:24

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I use CCH quite a lot more than Paul.  It is always good to get a second opinion or clarity on a certain issue.

I would not rely on them for detailed tax planning or very technical matters.

I have previously used abbeytax (lexisnexis) and to be honest I personally find CCH a bit better.

 

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18th Oct 2010 14:21

dwelling house

I read this on the changing definition of "dwelling house" - great read and well worth it for getting a better understanding

http://media.bankingtaxfinance.com/App_Media/DavisLangdon/pdf/Copy_1_The...

 

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Dave

Many thanks - that seems to get to the bottom of it.  Pretty sure my client hasn't lost out and one of those situations where I'm glad not to have heard about it when it all blew up.

Cheers

Paul

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19th Oct 2010 08:17

Capital Allowances on Buy to Let Properties

Is there any chance anyone could copy me in with the article from the CIOT monthly magazine article on Capital Allowances on Buy to Let.

Many thanks

 

 

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By recoup
23rd Oct 2010 16:49

rented property - capital allowances on the building

The FHL should be no problem.

The Buy To Let might be a problem. It won't qualify as a FHL because "A period of longer term occupation is a letting to the same person for longer than 31 continuous days" Unless the Buy To Let is multiply occupancy under specific conditions such as broken up in to dwelling units like Halls of Residence (albeit small ones). I've attached an introductory powerpoint slide which covers some principles of property capital allowances. If you want to discuss you particular case, feel free to drop me a line. [email protected]

http://www.recoupcapitalallowances.co.uk/Property-Capital-Allowances.ppt

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4 info

HMRC have now issued new guidance, see similar thread:

http://www.accountingweb.co.uk/anyanswers/capital-allowances-buy-let-properties-0

P

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