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Where Taxpayers and Advisers Meet

Furnished Holiday Let Setup Costs

CG
Posts:202
Joined:Wed Aug 06, 2008 3:33 pm
Furnished Holiday Let Setup Costs

Postby CG » Thu Jul 21, 2016 6:02 pm

Hi

Please could you clarify the correct way to account for furnishings such as kitchenware, towels, bedding, etc.

Should the initial cost of these, when kitting out the new FHL, be capitalised and 100% AIA claimed on them.

As these items have to be replaced when they break/wear out, can their replacements be claimed as revenue expenditure?

Thanks for any help on this.

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Furnished Holiday Let Setup Costs

Postby bd6759 » Fri Jul 22, 2016 10:36 am

Should the initial cost of these, when kitting out the new FHL, be capitalised and 100% AIA claimed on them.
Yes
As these items have to be replaced when they break/wear out, can their replacements be claimed as revenue expenditure?
Possibly. Implements and utensils will be covered by the renewals provision at s68 ITTOIA


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