Holiday Home tax

Holiday Home tax

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Within the 2013 / 2014 tax year I bought a new static caravan to rent out over the holiday season.  It does not qualify as a Furnished Holiday Letting as it hasn't been let out long enough (100 odd days) .  I spent around £5k on things like TV, DVD player, crockery cutlery, bedding, kitchen items, furniture, UPVC decking, etc.  Can I claim any of that back on my SA tax return and if so is it an expense, or capital allowance or annual investment allowance?

I also understand that I can't claim back any of the purchase costs of the actual new caravan itself, is this correct?

Thank You

Best Regards

Ian Sutherland

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By plummy1
14th Apr 2014 11:02

A Clue

Hi Ian,

Until it qualifies as an FHL you are right you cannot claim capital allowances and therefore the Annual Investment Allowance is of no relevance. Until such time as it qualifies as an FHL then it is treated as a property business. The HMRC issues plenty of guidance in this area in the Property Income Manual. I believe you are looking at wear and tear allowances.

 John 

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