EEA Furnished Letting Expense

[WINDSURFER]

I have an EEA furnished letting & replaced two old single beds at a cost of €850 last tax year. The expenses section of the self assessment return says that the renewals allowance for furniture is no longer available but the capital allowance section seems to say that furniture can be claimed for. Can I claim an allowance ? Thanks for any advice.

[bd6759]

That depends if the business qualifies as furnished holiday lettings.

[WINDSURFER]

Thanks for reply. It is a furnished house which is managed by an agent for me during the summer season & I use for up to three months in the winter. Does that qualify as a furnished holiday letting ?

[bd6759]

What have you put in your tax returns?

If it’s a FHL, you will have declared the income in the FHL part or the UK property income pages (because EEA counts as UK for FHL purposes).

If it not FHL you will have declared it in the foreign pages.

The FHL criteria is here: https://www.gov.uk/government/publications/furnished-holiday-lettings-hs253-self-assessment-helpsheet

[WINDSURFER]

I have entered it as a FHL on the return as I have read the criteria & believe that the property qualifies as a FHL in all aspects. I am hoping this means that I can claim the expense in the Other Capital Allowance section.

[Ray Coman]

If it qualifies as a Furnished Holiday Lettings https://comanandco.co.uk/lodger-and-guest-house-income#Furnished-holiday-lettings , you will be entitled to capital allowances on furniture, equipment and fixtures. The guidance on the HMRC site is explicit about this... It is on the first page here: https://www.gov.uk/government/publications/furnished-holiday-lettings-hs253-self-assessment-helpsheet/hs253-furnished-holiday-lettings-2018