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Furnished Holiday Let capital allowances

Furnished Holiday Let capital allowances

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Please help - my brain is fried.

I have a client with a furnished holiday let who has purchased a wood burning stove (to replace an old electric fire which was no longer working or servicable) and also had a couple of windows and doors replaced with double glazing due to ill fitting and drafty etc. My first question is is there anything I can do with these in terms of capital allowances etc? Or is it a capital cost just to keep a track of upon disposal? 

Secondly, where they buy lots of small items to keep the place in a good state such as new kitchen ware, towels, linen and bedding etc, how would you treat that? In the first year there was significant expenditure in the first year for kitting the place out. I capitalised these and claimed AIA in full. Do I just continue with this for everything purchased or do I need to be careful with renewals of items I have already had relief of? 

I would really appreciate any help as I am going round in circles reading the legislation tonight. 

Many thanks,

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By plummy1
21st Jan 2015 16:42

In my opinion

Hi Ambrose,

I'm not an accountant but my company deals with capital allowances claims on commercial property. I believe, unless anyone has any ides to the contrary that:-

a) The replacement of the old electric fire represents an improvement and should therefore be capitalised and capital allowances claimed.

b) The windows being a direct modern replacement can be classified as a reapir / revenue expenditure

c) Any items which are estimated to last more than two years may be capitalised as they have an enduring benefit to the trade. Replacement of these items would then be treated as revenue expenditure.

d) Any new items would then be either capital if they have more than a two year life span (and would be covered by the AIA) or they would be revenue items if they are not likely to last two years.

If your interested we claim for capital allowances on the fixtures in commercial property such as sanitary ware, heating and electrical systems etc which can represent 25% of the original purchase price of a standard furnished holiday let. If your interested in learning more please pm me of or phone me on 07779 756213,


John Plumridge. 






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