Furnished holiday let and capital allowances

Furnished holiday let and capital allowances - Ex PPR

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Hi, client bought a property and rennovated, then lived in the property for a few years as his only PPR and is now looking at renting this as a Furnished Holiday Let. Ignoring all the qualifying rules please can someone confirm the position with regards to potential capital allowances claims, can we go back and make a claim based on the costs incurred whilst the property was rennovated ? 

Many thanks for any help.

 

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By Accountant A
08th Aug 2018 11:57

You say "confirm". What do you think "the position" is? If you tell us what your technical analysis is, we can give you some feedback.

Obviously that will involve not being anonymous but there didn't seem any reason to use that facility in the first place.

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By millertime
08th Aug 2018 12:20

I am thinking we can claim the costs incurred that would qualify at the date the FHL started but no claim for AIA.

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By Accountant A
08th Aug 2018 12:48

So they have started a new trade and brought into that trade pre-owned assets?

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By millertime
08th Aug 2018 12:56

Yes that's the way I'm looking at it but thinking about it unsure if I should use market value at date business started. If this is the case presumably the market value of say heating system in a building would be relatively low compared to initial cost leaving a much reduced claim.

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Replying to millertime:
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By Accountant A
08th Aug 2018 13:01

Quote:

Yes that's the way I'm looking at it but thinking about it unsure if I should use market value at date business started. If this is the case presumably the market value of say heating system in a building would be relatively low compared to initial cost leaving a much reduced claim.

Not sure you have a choice, do you, if that's what the legislation says?

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By millertime
08th Aug 2018 13:10

No, don't think I do, ahh well - thanks for your assistance. Much appreciated.

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