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FHL's

JJH1969JJH1969 Feels At HomeStaffordshireRegistered Posts: 110
in General accounting discussion
I have a client who purchased a FHL in December 2013. They have invested a large sum of money into furnishing it (beds, fridges, carpets, TV etc) for the holiday season but for 13/14 have not qualified as a FHL. Obviously the renewals basis has been scrapped but surely there must be a way to claim back these costs?

Comments

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,433
    Could they claim the 10% wear & tear this tax year and the capital allowances next tax year if the FHL conditions are met?
  • KernowAccountantKernowAccountant Settling In Nicely Registered Posts: 120
    JJH1969 wrote: »
    I have a client who purchased a FHL in December 2013. They have invested a large sum of money into furnishing it (beds, fridges, carpets, TV etc) for the holiday season but for 13/14 have not qualified as a FHL. Obviously the renewals basis has been scrapped but surely there must be a way to claim back these costs?
    Starting at the beginning - have you paid attention to s.324(2) ITTIOA 2005 when deciding that it didn't qualify in 2013/14?
  • JJH1969JJH1969 Feels At Home StaffordshireRegistered Posts: 110
    Yes I did. I have spoken to HMRC and they advise that as it wont qualify until 14/15 then trade doesn't begin until then so the capital costs can be bought in on first day of trading which is 1 July 2014. Just thought Id let you all know incase you have similar
    MarieNoelle
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