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?