Bed and Breakfast Partnership

jilt Registered Posts: 2,903
I have a few clients who earn income from UK property as investment income but I have been approached by a partnership who own a bed and breakfast which is also their home, and before agreeing to take them on I want to be sure I have all the facts. I consulted my Tolleys tax guide , HMRC and the internet to check the differences with allowable expenses between B & Bs and investment income but am either looking in the wrong place or the info just isn't there.

Could anyone help with the following queries please?

Investment property - can claim 10% of rental income for wear and tear, I believe a B & B, who's income is regarded as trading income, can claim capital allowances, is this correct? I'm confused on this one cos I read they can claim the 10% wear and tear but also the cost of renewal of fixtures such as baths, WCs etc but also read they can claim capital allowances for things like fire alarm systems.

With regard to general expenses like heat and light, insurance etc, what are the rules when deciding what percentage is business and what percentage is private?

The potential client has 4 double rooms available so I believe they will pay business rates as the accomodation is for more than 6 people, is that correct?

Is there anything else particular to bed and breakfasts?

Any help would really be appreciated as they are coming to see me at noon tomorrow, so no pressure!

Many thanks


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