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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I bought holiday home in 2013 I had to install a kitchen and

Resolved Question:

I bought holiday home in 2013 I had to install a kitchen and furnish the property as an FHL the cost were incurred in the tax year 2012/13 but there was no rental income until 2013/14 can I offset the costs against any tax liability going forward ?
Submitted: 3 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 3 years ago.
Hello and welcome to the site. Thank you for your question.

If you have incurred costs that are of a capital nature i.e kitchen fittings and furnishing, you will be able to claim capital allowance for them in filing your accounts for 2013/14.

Accounting for furnished holiday letting is covered here - SA105 notes Page UKPN 3

http://www.hmrc.gov.uk/worksheets/sa105-notes.pdf



More information on capital allowances can be found here - HMRC helpsheet 252

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/323611/hs252.pdf

I hope this is helpful and answers your question.

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