My husband and I recently bought a small property to use as a holiday rental on the proceeds of an inheritance and some of our own savings. We are both self-employed in small businesses in other fields so know how to complete self-assessment tax returns. However, we have questions about specific areas regarding the holiday let:
[list] Does the property itself count as a capital asset? e.g. as cars, machinery would normally?
If so, what happens when we eventually sell it?
We have spent several thousand pounds setting up the property for rental but have no income from it in the 2017-18 tax year. How do we enter this on the property section of the tax return as it seems only to allow for income? How do we offset these expenses against this coming year's tax liability when, hopefully, we will have received some rental income?