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Posted Sat, 18 Nov 2023 22:42:55 GMT by
We claimed Capital Allowance on furniture and fittings when we established a Furnished Holiday Let some 5 years ago We need to replace some items ie fridge freezer and setee. Can we claim Capital Allowance on these new items?
Posted Tue, 21 Nov 2023 11:45:17 GMT by HMRC Admin 8
As you claimed Capital Allowances on the original purposes I would suggest you read HS252 & HS253 for further guidance.
Thank you.
Posted Thu, 23 Nov 2023 13:28:10 GMT by
Sorry but these documents do not answer my question. I claimed Capital Allowance on items such as furniture. When I come to replace them, can I claim Capital Allowance on the replacement items? If this is classed as improving, them presumably I can claim the costs as a Capital Allowance? It also gives no detail as to what is vovered by equipment on a FHL- is this cutlery kitchen equpment such as Saucepans, frying pans etc etc
Posted Mon, 27 Nov 2023 17:35:32 GMT by HMRC Admin 19

As your rental business consists of a FHL, they do not qualify for domestic items relief so Capital Allowances may be claimed when you replace furniture and white goods. We would advise that for items such as saucepans, frying pans, cutlery and so on, to consider pooling the items together and putting them in a short life asset pool. You can find more information here:

HS252 Capital allowances and balancing charges (2020)

If you disposed of any of the items as scrap or second hand, that is, you received payment for such items which have previously been claimed as a Capital Allowance, you may have a balancing charge. Again this is covered within the guidance above.

You can also see guidance here:

PIM4140 - Furnished holiday lettings: special tax treatment of furnished holiday lettings

Thank you.

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