FHL Captal vs renewal allowances

[philipgreg]

Hi I am new to holiday lets and am confused as how to claim capital allowances and renewal allowances.
My property qualifies for the FHL tests (both old and new).
I purchased it with my wife in June 11.
We purchased the entire contents of the house for £5000
Some of the contents require replacement in the near future.
I understand that crockery, utensils and linen etc can be claimed as business expenses.
If I claim capital allowance for the 5k is this at 50% first year?
How do I then treat the renewals?
Is it simpler to forget the Capital allowance and just claim renewals for anything I replace and Capital for entirely new items?

Sorry for the number of questions but the examples on HMRC site all seem to refer to people buying plant and machinery!

Phil

[plummy1962]

Dear Philip,

As you purchased the property in this tax year you will be able to use the annual investment allowance of £100,000. This means anything that can be identified as capital expenditure can be claimed in the tax year up to this value provided the FHL does meet the qualifying criteria for the tax year in question.

I don't know how much you paid for the property but you may want to look at the possibility of making a full capital allowances claim on the property which will include fixtures within the fabric of the building. These will constitute approximately 25% of the purchase value of the property but it will need a specialist company to undertake the work.

We can help you with this but there are other companies available which are easily identified through google searches etc. Make sure you talk to more than one as quality and professionalism does vary.

Regards
John