Finance costs for laptop

Hello, I’ve been reading over the property income manuals and from what I understand, finance restrictions are mostly related to the acquisition, construction or adaption of the dwelling house. My current laptop which I use for my property business is needing replaced. I am considering purchasing a new one on finance and am wondering which box on the self assessment to put the loan interest on? And also, I assume the loan interest would be expensed only for the accounting year while the entire purchase cost of the laptop could go down as part of the annual investment allowance in the accounting year which it was acquired? I am using traditional accounting (not cash basis).

Hi,
Please declare the interest on your laptop in Box 26 (sa105) non residential property finance costs or in the equivalent box online.
Self Assessment: UK property (SA105)
Thank you.

Hi, I'm not HMRC Admin but I think the Admin must have misunderstood your question as the box they have told you to claim it in relates to the finance costs of buying commercial buildings. The guidance notes for sa105 say: 'Box 26 Non-residential property finance costs Non-residential property You can claim the costs of getting a loan, or alternative finance to buy a non-residential property that you let, and the full amount of any interest on such a loan or alternative finance payments.'

@BellaBoo I will take the authoritative response from HMRC over the anonymous post from a user that is completely unknown to me.

I appreciate you don't know me, which is why I advised the information comes from the official published guidance, provided by HMRC to help you to complete your return correctly (so you could verify it yourself, because I realise I'm contradicting one of the Admin). You are misunderstanding the paragraph in PIM2054. The legislation makes it clearer. https://www.legislation.gov.uk/ukpga/2005/5/section/272B Look at (2) and (3) and you will see the wording in the manual about being for the acquisition, construction or adaption extends the application of para (2) rather than narrowly defining it. The interest restrictions apply to all finance taken out for a property business that consists of generating income from a dwelling-house. It doesn't just apply to loans for a dwelling house. Which is why it is called a dwelling-related loan rather than a dwelling loan. Sort of like the exemption for work related training for employees, if you're familiar with that area at all. But in case you're not, have a other look at PIM2052 (I'm going to post a slightly edited version to make it clearer on what it is actually saying, but im also telling you this to be fully transparent); "For tax years up to and including 2016/17, interest payable under hire purchase agreements or on an overdraft is deductible where the asset is used for business purposes. From 2020-21 onwards, no deduction is allowed in calculating the profits. An individual customer may deduct from his or her tax liability for the year an amount equivalent to the otherwise unrelieved interest and finance costs multiplied by the basic rate of tax for the year in question." https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2052

Additionally, just to explain, I didn't provide that information in the first reply because I'm trying not to step on the Admin's toes and was hoping my post would act as a prompt for them to review the question that had been asked and the answer given.

Okay that’s fine. Thank you for the information. I will revise my intentions.