I would appreciate any help you can offer given the following scenario.
A client purchased a property in 2012/13 and bought furniture and white goods to let the property out as a holiday let. In the first tax period the property did not qualify as a furnished holiday let so was classed as an ordinary rental property. Accordingly the client claimed the 10% wear and tear allowance.
In 2013/2014 the property now qualifies under the FHL rules and the owner wants to claim the value of the white goods and furniture under capital allowances. My questions are therefore:-
i) Can the full value be claimed for capital allowances or has the previous claim for wear and tear allowances altered this? If the full value cannot be claimed what proportion of the value could be claimed.
ii) If capital allowances can be claimed can AIA be utilised as this is the first year the business has qualified under the FHL rules?
Any assistance with this question would be greatly appreciated.