Guest House Query - Capital Allowances

Felic Registered Posts: 1 New contributor 🐸
I have a client who owns a guest house and have added a loft conversion for their own personal use but this will then free up 2 additional rooms to allow them to be used as further guest accomodation increasing their current 7 rooms upto 9 rooms.

Would this expenditure qualify for capital allowances proportioned for percentage of private use of the proporty as a whole which is currently 25%?


  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
    First instinct would be no to the capital allowances for the loft conversion because that is purely private use. However, any changes to the other rooms would be allowable. Maybe this one needs confirmation from HMRC if you want to try to claim more.
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