Guest House owners since 2008 trading as a partnership considering Capital Allowance claim for embedded fixtures prior to January 31st. The knock on effect would release repayment of tax from 2016/17 and 2017/18 plus minimise any payment to account for 2019 leaving little liability for tax.
However as we are currently changing the accounting year (01.05.2017 - 30.04.2018) (01.05.2018 - 31.03.19) thus preparing 12 month and 11 month accounts to 31st March 2019 this will attract overlap relief.
As overlap relief would be mandatory and be given as a deduction for that tax year we are seeking to understand whether the reduction in 2017/18 profits by virtue of the Capital Allowance claim would negate the overlap relief, meaning it would be lost ?
Any thoughts or pointers would be most appreciated.