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Posted Sun, 07 Jan 2024 17:48:04 GMT by
I am dealing with a property that was until March 2021 used as a long term let. During 21/22 it was converted into a short term holiday let and fully meets the qualification requirements as a FHL in the 22/23 tax year. I've read as much relevant HMRC guidance as I can and am aware of the the difference between capital and revenue spend but there are a couple of specific areas of expenditure that I am unclear about how to treat for the 22/23 tax return There are several capital items of spend that effectively enhance the existing property - for example - - a new stove to replace the old gas fire - a new (additional) radiator - a shower where there was none before - also there has been an automatic fire door put in - a health and safety requirement for the property for short term letting Would all of the above items be claimable for Capital Allowances (either in full or in part)? Also the property's accounts include headings for 'minor' internal and external furnishings - this includes multiple expenditure items of generally low individual value - to give an idea of the variety it includes for example - beach toys, games, kitchenware, cushions, fairy lights, Christmas decorations, pictures bought from Charity shops, doormats etc - many of the items might reasonably be expected to need replacing within the short / medium term. I'm thinking these things should be classed as general expenditure (though presumably need appropriate restriction for associated private use in the year) and not capital allowances (eg a picture or ornament bought for £5?) I would be very grateful for any guidance or clarification on how to correctly treat the above items. Thank you
Posted Mon, 15 Jan 2024 10:34:10 GMT by HMRC Admin 8 Response
Hi,
We have attached a link which may go some way to giving an explanation. However if you need more specific advice we would suggest you should call HMRC on 0300 200 3310:
Capital Allowances Manual
Thankyou

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