FHL Caravan - capital allowances - conflicting advice
I bought a caravan to let for 5K in 2011/12 tax year and am letting it as a holiday letting FHL this 2012/3 tax year on a registered caravan site. I am aware of your discussions as whether the capital allowance is available on the purchase of the caravan.
I obviously hope that capital allowance is available for the purchase of the caravan; but with the conflicting guidelines I am unsure of where I stand. As you know
The FHL section of the HMRC PIM where it lists some of the differences in the treatment of FHL's it states:
“Entitlement to plant and machinery capital allowances on furniture, furnishings, etc. in the let property, as well as on plant and machinery used outside the property (such as vans and tools); but there are no capital allowances for the cost of the property itself or the land on which it stands;”
Paul Scholes pointed out that ; Caravans are referred to at CAA 2001, s. 23, list C, item 19, which provides that a caravan provided mainly for holiday lettings is not to be prevented, on the grounds that it is a building, etc. from qualifying as plant.
In the discussions on accounting web; Batty girl had talked to an inspector confirmed that capital allowances are available on caravans as long as they meet the criteria in CA22100 and that this applies whether the income is treated as normal property income or FHL income.
Can I rely on this an just assume that the caravan I have purchased can be included as a capital allowance ?
Or should I do something to gain assurance such as obtain written tax advice from someone with profession indemnity insurance ( I guess all accountants have this ?), which states that capital allowance is available for the caravan in this situation ?
If so, who would be able to offer such a service ?
I really just want to cover myself with the hmrc and looking to the future I am looking to buy another caravan next year as a FHL, if the capital allowance is available on the purchase of the caravan. What should I do ?
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