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Furnished Holiday Lettings - Allowances

I started renting a property out as a furnished holiday let in May 2011 and meet the occupancy rules.

The property had some new white goods and a new kitchen. I bought more new white goods, tv, furniture, linen etc

I don't want to make the future too complicated (if I sell the property) by claiming large capital allowances associated with the fabric of the property.

I do want to recognise the depreciation of the white goods etc and the kitchen, I have already replaced some of the linen. 

I've struggled with deciphering HMRC helpsheets - some practical advice on what/how to enter on the form please! Thank you.


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22nd Jan 2013 11:36

FHL allowances

I'll tell what I would do about white goods etc. etc.

Too much work to keep track of individual purchases for CA claim so I would just claim 10% wear and tear allowance instead.

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W&T allowance not available

W&T allowance is available on ordinary Furnished Lets but not Furnished Holiday Lets. 

Annual Investment Allowance of up to £100K is claimable last tax year (£25K 2012/13) which should be enough to swallow all your expenditure, so just put what you spent in that box.

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26th Jan 2013 16:49

I going to claim AIA for what I spent in 2011/12 as suggested. I'm also going to claim 20% of the residual value (in 2011/12) of the items that already existed. Next year I'll claim 18% of the value of items bought in 2011/12 plus 18% of the updated residual value of the other items.  I'll use this approach until items have to be replaced and will factor in the proceeds of any sale of them. I bet someone could devise a spreadsheet specific to FHL for those of us that have 'simple' tax affairs - I might even have a go myself !    

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22nd Jan 2013 12:50

W&T allowance not available

Great! This is even easier then!

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