FHL Capital Allowances - Plant and Machinery

Victoria17

[Deleted User] said:

Victoria17 said:

[Deleted User] said:

Victoria17 said:

Jeremy535897 said:

The annual writing down allowance is likely to be 6% (reducing balance) for some of the items, if no AIA is available, and you have to bring in a market value of the plant and machinery to calculate a balancing charge or allowance if you sell the flat. £31,000 sounds a lot for a studio flat used as a FHL.

I would qualify for First Year Allowance. But are you saying if I switched the property to a Buy to Let or if I sold it, I would have to have another survey/evaluation done, declare it to HMRC and pay taxes on that amount? I don't know after how long it would be considered to be depreciated enough in value that the whole process would be worth it...

I think that our posts crossed - you are correct.

Thank you for confirming this. So there it is, there's the catch! I'll just be delaying some tax payment but not avoiding it forever. And it will cost me 2K for the privilege. Not worth it... :-( Thanks again!

Yes - but, if it qualifies, and using my figures, you will have claimed tax relief on the correct depreciation (£31000 - £15000). The point could be that you don’t have to pay any existing accountant £2000 for the privilege.

I see... But I'd still have to pay £2000 for the initial property survey... I'm not sure overall it would be worth it...