Holiday Let and Capital Allowances

Hollysan

Hi everyone,

I have a client (retired individual) who bought a property two years ago and has been operating it as a holiday let business. I prepared accounts and tax returns for the first two years but due to ill health she has stopped the holiday let business and now has a tenant in from 1 April 2012 on a short-hold tenancy. During the two years previously we claimed capital allowances on furniture etc she bought for the property. The new tenant had his own furniture so she has let it unfurnished, taken some of her furniture for her own use, some she has given to family, and some she gave to the PDSA! (I have the paperwork for the latter for Gift Aid). My question is this, as there were no disposal proceeds received do I need to include as a balancing charge? I am assuming not as she has not gained from the disposal. But then where would this leave her with the Gift Aid?

Also are there any other issues I need to think of with the change in the nature of trade? I have not come across this one before so would be grateful for any thoughts.

Many thanks,

Hollysan