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Posted Mon, 20 Mar 2023 09:08:40 GMT by Gosia Herd
I am writing to request technical assistance in relation to residential landlord Ltd company and holiday lettings landlord Ltd company capital allowances. Both companies invested in the below: - replacement of windows - replacement of boilers - carpets replacement - kitchen/bathroom refit - rewiring - domestic items replacement Can you please confirm/advise if the below treatment is correct way of treating the capital allowances? For holiday lets: I believe that kitchen and bathroom refit would be classed as fixture and believe we could use super-deduction. Rewiring and boilers - would be classed as integral features and believe FYA would be applicable. And now facing a bit of a stumbling block, replacement of windows and carpets.... how would you class these, could we claim capital allowances for these (and if so, could we use FYA or should we use the domestic item replacement relief) or should these be classed as repairs/maintenance? - Residential property incorporated landlord significant expense incurred on very similar works as mentioned above, but I am aware that residential landlords are unable to claim Capital Allowance. So how do we claim these costs on corporation tax return? I believe some of them would go under the domestic items replacement relief, but I am struggling to find this section or supplementary pages on the corporation tax return. Can you please advise how to use this relief? Also, the items like fixtures and integral features, how would we claim these or is it not possible to claim these at all? Your input will be greatly appreciated!
Posted Thu, 23 Mar 2023 15:52:31 GMT by HMRC Admin 20
Hi Gosia Herd,

Guidance in relation to furnished holiday letting can be found here -
HS253 Furnished holiday lettings (2022).
Provided the conditions are satisfied, expenditure on furniture, windows, carpets etc would qualify for capital allowances.
If the conditions are not met such expenditure is not allowable as a deduction against letting income.

Thank you.

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