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Where Taxpayers and Advisers Meet

FHL Spreading Cost Over 10 years ?

Landlord-Man
Posts:2
Joined:Thu Mar 17, 2022 12:41 pm
FHL Spreading Cost Over 10 years ?

Postby Landlord-Man » Sat Mar 19, 2022 11:19 am

Reworded my enquiry to make it easier (hopefully)

I wish to spend roughly £20,000 on battery storage for my 4 x joined Furnished Holiday Lets - charging with cheap overnight electric (perhaps solar but don't know yet).

Our only income is from the FHLs (approx £14,000 each for wife and I), so we pay very little tax each year.

How could I best account for that £20,000 (cash) expense? - ideally, we'd like to spread it over 10 years and claim the business cost at £2,000 per year (£1,000 each of us) which would bring our tax down even lower.

Suggestions welcome please.

And the curveball, what would also happen if we then converted the FHLs to residential AST letting?

THANK YOU

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

Re: FHL Spreading Cost Over 10 years ?

Postby bd6759 » Sat Mar 19, 2022 3:35 pm

I reckon this is an electrical system and will be covered by the “integral features” part of capital allowances. That means you can claim either the whole amount using the annual investment allowance, or claim the writing down allowance at the lower rate of 6% per year.

You can only claim capital allowances whilst the lettings qualify as FHL. You cannot claim CAs in an ordinary residential letting business.

Incredulum
Posts:2795
Joined:Thu Dec 03, 2009 5:35 pm

Re: FHL Spreading Cost Over 10 years ?

Postby Incredulum » Mon Apr 11, 2022 5:57 pm

I wish you luck if you're expecting to charge overnight with solar. Tax planning will be the least of your worries...

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: FHL Spreading Cost Over 10 years ?

Postby robbob » Mon Apr 11, 2022 6:39 pm

I wish you luck if you're expecting to charge overnight with solar.
I saw the video on youtube only 10 days ago - charge with special lunar panels - this modern tech is amazing
https://www.youtube.com/watch?v=olSZTWtqdQo


now if only we could grow spagetti on trees life would truly be simple


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