Rental property - capital allowances help needed

Hi,
Sorry of this seems like a daft question.... one of my clients owns a property which she rents out.
Are capital allowances available for the cost of buying the property? i.e. the mortgage (capital portion)
If so, do properties qualify as AIA?
For some reason I assumed that only the interest was allowable but I am in doubt now...
Any help would be very appreciated.
Thanks in advance.
Sorry of this seems like a daft question.... one of my clients owns a property which she rents out.
Are capital allowances available for the cost of buying the property? i.e. the mortgage (capital portion)
If so, do properties qualify as AIA?
For some reason I assumed that only the interest was allowable but I am in doubt now...
Any help would be very appreciated.
Thanks in advance.
0
Comments
Yes the purchase of the property is capital allowance.
the mortgage, will need to be broken down. as the interest is deducted from Rental Income.
However, AIA is only for Businesses, if they are a sole trader then AIA does not count.
I'm sure this is correct, a while since I've done BTax.
No, capital allowances aren't available on the property.
You can elect to use the [URL="Saturday 23 November 2013 - 09:00 to 16:30"]10% wear and tear allowance[/URL] which will help to reduce the rental profits (and therefore reduce tax).
The cost of the property will come into play when the property is sold (capital gain = sale proceeds from property - cost of buying property).
If your client still lives in the property and just rents out a room you may be able to use rent a room relief.
Sole traders do run businesses (unincorporated businesses). These types of unincorporated businesses are entitled to claim AIA.
Only if the property is furnished.
Only if it's fully furnished (partly furnished properties do not qualify for w&t).
Which should be influenced by what HMRC consider partly furnished:
http://www.hmrc.gov.uk/manuals/pimmanual/PIM3200.htm