Caravan capital allowances....

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Paul C
Paul C Registered Posts: 193 Dedicated contributor 🦉
in General accounting discussion
Hi all,

Some advice would be really appreciated please. My client has furnished lets with a profit. Also has one caravan that makes a loss before capital allowances (which I will carry forward). Caravan qualifies as a FHL. Can the capital allowances element of the total loss (aware can only claim WDA and not AIA) on the caravan be offset as a loss against his other income (to include pension and furnished lets) in the same year? HMRC notes don't seem to make this clear and I am going round in circles....

Help very much appreciated if possible please.

Paul

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  • MarieNoelle
    MarieNoelle Registered, Moderator Posts: 1,368
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    Hi Paul
    I would have thought that UK FHL Losses can only be offset against UK FHL - HMRC guidance (p.7) states that you should "Enter the amount of any FHL loss you made last year or in earlier years up to the level of your FHL profit for this year."
    The working sheet on p.7 shows how to calculate the FHL loss including capital allowances.
    MN
  • Paul C
    Paul C Registered Posts: 193 Dedicated contributor 🦉
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    Thanks Marie :smile:

    That's what I thought. The caravan site's own accountant has given all caravan owners a leaflet which seems to imply that they can offset FHL capital allowances against other income. Which made me doubt myself and got me spending alot of time trying to figure out where the accountant was coming from. Oh well. Sigh.... :+1:

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