Many thanks for your questions, I hope this gives a start to providing answers.
We bought the building £72000 (incl. expenses of purchase) Nov 2001 from a private residence. We intended to use it for groups of friends, but soon realised that we would need to go commercial to support the cost of necessary improvements. By Jan 2005 we had plans accepted for substantially new layout inside the building to provide fire escape routes (claimed as expenses in that tax year '05/06), and paid for new internal walls, renovated kitchen and shower room, new central heating, new studio flat for FHL - living/ kitchen area, bathroom, stairs, additional rooflight, rewiring and re-plumbing and carpet and a new mains line from the road to allow separate metering. And all in a grade II listed building with thick stone walls. Professional costs were £41000 in total, materials for our own work another £10000, grand total £122000 (all figures rounded for clarity).
FHL was started in '05/06 and continued until the building was sold in mid-April 2013. FHL conditions were met in that period.
FHL allowed me to claim capital allowances OR choose a 10% wear & tear regime.
I chose the first, as capital costs were necessary for plant and equipment to set up the business, and the 10% seemed too fixed a number to reflect possibly wildly changing circumstances.
We claimed capital allowances for rewiring and re-plumbing, new furniture and kitchen appliances, blackout blinds for rooflights, new rooflight, costs of converting a plumber's pipe store to a good bicycle store for guests. We included things to make the courtyard garden attractive - garden furniture, long-lived climbing plants, trellis to support them up the high walls. We uncovered a magnificent old fireplace, so claimed for timber flooring and tiles to front that.
Total capital claimed on was £34000, beginning '05/06. We were allowed WDA on that sum as follows:
'05/06 25% => 8500, leaving 25500
'06/07 25% => 6375, leaving 19125
'07/08 25% => 4781, leaving 14344
'08/09 25% => 3586, leaving 10758
'09/10 20% => 2151, leaving 8607
'10/11 20% => 1721, leaving 6886
'11/12 20% => 1377, leaving 5509
'12/13 20% => 1101, leaving 4408
total allowed £29,592.
We sold the building for personal reasons at a bad time. It went to auction as a private house, yielding £80,000 net - a very substantial loss on £122,000 invested. However we see that IR has allowed us a lot.
Please ask for more detail as necessary.