Good afternoon everyone.
I hope someone could point me in the right direction, I have a long standing client who is now running a B&B business. Within a large house, 2 rooms are used for the B&B plus dining room. The rest of the house is used for private occupation.
From what I have read, capital allowances cannot be claimed on the beds/carpets/curtains etc, which have been bought for the 2 rooms, but that the business can claim 10% wear and tear allowance per annum, as the income is from a furnished property.
However, within the first year the B&B has only been occupied for 60 or so nights. I am therefore assuming that the 10% wear and tear allowance cannot be claimed as the occupation falls short of the 105 days stipulated by HMRC? So, will have to wait to claim once the B&B becomes busier? The B&B is available for more than 210 days.
PS, the income is more than the rent a room relief and I don't think would be suitable in this situation.
Many thanks for any replies.
Replies (2)
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You can claim capital allowances...
... and you can't claim wear and tear, because it is a trade and not a property business.
The FHL test that you refer to isn't relevant.