We have recently purchased a property which qualifies as a Furnished Holiday Let in the first year of trading. I am keen to claim Capital Allowances on the plant, fixtures and fittings etc, and as a qualified accountant and tax adviser I would prefer to do the claim myself, but it is a little out of my normal comfort zone. I agree that it would therefore ususally make most sense to appoint a specialist firm to handle a survey and CA claim, but it is possible that the circumstances could change in the near future and the property would no longer qualify as a FHL, thus triggering a balancing charge, and a reduction in the original tax saving which may outweigh the profesional fees paid for the survey and CA claim.
The property was a private dwelling before we purchased it and as far as I can ascertain from the history, it has never been in a use which would have afforded a CA claim. There was therfore no requirement for a value to be placed on the F&F when the property was purchased, but this doesn't preclude a claim now as far as I understand.
I am comfortable with what qualifies as plant (including those items that the Capital Allowances Specialists say we thick accountants don't think of!!), but my only concern is how we arrive at the current value of the plant. Does anyone have experience of this and what formulae for depreciation might normally be applied in such instances? I asume a valuer would look to give each item an estimated original purchase price, then depreciate each asset in line with it's assumed age? But what rates are acceptable to HMRC?
Or am I missing something fundamental in how the value would be arrived at?
All help or any other tips in relation to this will be greatly appreciated.