Property invesment company depreciation Frs105

Revised post

Didn't find your answer?

Leasehold buy to let flat bought in middle of tax year total cost £280k, remaining lease 135 years, residual value after its useful life 135 years will be 0 as leaseholder will no longer own the property. Straight line depreciation calculated at £28000/135=£2074 per year. No capital allowance to be claimed for investment properties purchase cost. Does above sounds right? and do you depreciate 6 month or a full year rate? Is it acceptable to round it down to 2000 per year? 

Replies (4)

Please login or register to join the discussion.

By lionofludesch
22nd Aug 2019 18:37

Hmmmmmmm. Yeah - the kindest thing I can say is you're in way over your head here. It's not a question of benefitting from depreciating your assets. If you do depreciate an asset, it's because them's the rules.

Fortunately, it's Wembley week, so I will offer the advice that you take one of two options.

1. Read and understand FRS 102 and FRA 105. In full - just in case there's something else you didn't know (which seems likely).

2. Go and speak to an accountant who's already done that.

Thanks (1)
Replying to lionofludesch:
By n h
22nd Aug 2019 19:37

I did read the fra 105 and pretty sure Under the FRS105 rules one depreciate fixed assects. The detail is indeed difficult to fully understand for me.

Can anyone recomend accountants that is familiar in buy to let property and charges reasonable fees for advising on this?

Thanks (0)
By Accountant A
22nd Aug 2019 19:02

You know what you need? An accountant, that's what you need.

Thanks (0)
Replying to Accountant A:
paddle steamer
22nd Aug 2019 19:30

If there's something strange in your books of account
Who you gonna call? (An accountant)
If there's something weird
And it don't look good
Who you gonna call? (An accountant)
I ain't afraid of no posts
I ain't afraid of no posts

If you're seeing things unbalanced instead
Who you gonna call? (An accountant)
An single entry
Slipped into your books
Who you gonna call? (An accountant)
I ain't afraid of no posts
I ain't afraid of no posts

Who you gonna call? (An accountant)

If you're all alone
Pick up the phone
And call ,an accountant
I ain't afraid of no posts
I hear it likes the accruals
I ain't afraid of no posts
Yeah yeah yeah yeah
Who ya gonna call? (An accountant)
If you've had a dose of a freaky post baby
You better call, An accountant

Thanks (2)