I freely admit, my head's in a spin after reading around the subject and I would appreciate a pointer in the right direction.
Client (buyer) bought a holiday letting property in summer 2013. This property had never qualified as a furnished holiday let (FHL) for the seller, so no capital allowances (CAs) were (or could have been) claimed by the immediate previous owner who had owned the property for some 5 years.
Client acquired the property, together with holiday bookings and, within 12 months, demonstrated that they had a qualifying FHL - from the very second they acquired the property.
Can client claim CAs for purchased integral features and fixtures? If they don't claim and could have, I understand they now risk no future owner ever being able to claim. What procedures must they follow; what traps await?
As S 198 elections and Tribunal fixed values do not apply (because seller did not have a business eligible for CAs):
- do they need to obtain a statement from sellers that they did not claim CAs
- do they need to go back in time check that no previous owner ever claimed CAs or otherwise establish fixed value?
- should they not even risk a lowish 10% (under) claim without obtaining expert capital allowances surveyor valuation?
Thank you so much if you know and can comment helpfully.