Self Assessment » Furnished Holiday Let - Allowable Expenses and categorisation » Go to message
1) If we are to split out capital items. Please could you clarify whether the items below (which replace existing broken or damaged items) are capital or expenses
a) Replacement Sofa
b) Replacement Vacuum cleaner
c) Replacement Garden Chairs
d) Replacement pans/crockery and cutlery

2) For those items which are capital can we claim the full amount under the annual investment allowance

Thank you

Self Assessment » Furnished Holiday Let - Allowable Expenses and categorisation » Go to message
We have 2 furnished holiday lets in the UK with a combined income of around £53,0000 (so under £83,000) and total expenses (including capital allowances) are around £50,000 (exact figure to be finalised).
Can I just check my understanding of the reading of the UK Property Notes and the Claim Capital Allowances Notes
1) All expenses and capital items (as per capital allowances) should be put into Box 9, rather than compleing each separate box 6 -12 on the UK Property Form.
2) I do my return on a 'cash basis', so categories income/expenses/capital items all in the period they were received/purchased.
3) Items bought, such as a replacement sofa to replace a damaged sofa are claimable as a capital allowance and we can claim the full cost of such items against profit in the year it was purchase, as part of the Annual Investment Allowance (since the items we will be claiming are well under the £200,000 Annual Investment Allowance). However, since our income is less than £83,000 such items should just be included in Box 9, along with other expenses.

Thank you