Holiday Let and Capital Allowances
Hollysan
Registered Posts: 68 Regular contributor ⭐
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
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
0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 318 NEW! Qualifications 2022
- 161 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 87 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership