NEW FHL

I have a new holiday let which has just qualified as FHL due to number of days let. Have had conflicting information on self assessment. First night let: 30/3/24 First income received from management company 4/5/24 Do I submit self assessment for 6/5/24-5/4/25 and include pre-start up costs to include capital allowances and allowable expenses ? Repairs, renovations incl new kitchen, heating,lighting,carpets,furnishings & furniture etc amounted to around £50k which I assume are capital allowances? I’m also been chased by companies to claim ‘embedded capital allowances’ for which they’d like to charge me around £3k. Is this not something I can do myself and is there any help sheet / advice please about what this would include? Thank you

Hi ,
 

You should submit a tax return for 06/04/2024 to 05/04/2025.  Any expenses incurred before the first let must be solely for the rental business.  This also includes any capital allowances.  They can be included within the boundaries of the 2024-25 tax year even though technically they were before that.  Capital allowances may be claimed on the initial purchase and replacement of furniture, furnishings and fixtures provided for use in the property e.g. household appliances such as a fridge freezer or dishwasher.  A fixture is any plant or machinery that is installed or fixed into the furnished let so that in law it becomes part of that let for e.g. a boiler or water-filled radiator.  Embedded capital allowances are along a similar line. They are items that could be screwed, nailed, plastered or even bricked into your let.  These immovable items are such things as heating and air conditioning systems, security cameras and lifts. If you want to pay for the services of an accountant you can or you can use are notes and help sheets for free. The guidance on furnished holiday lettings and capital allowances is here: Furnished holiday lettings (Self Assessment helpsheet HS253) See : Capital allowances and balancing charges (Self Assessment helpsheet HS252)   . There is also some very detailed guidance on the SA105 notes: See     (www.gov.uk)Self Assessment: UK property (SA105)    . Thank you