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07 June 2011
HMRC finally make FHL confirmation
In Mike Truman’s report on the CIOT Cambridge conference it was said that the CIOT had been asking for clarification on the implications of the change to the wording of HMRC’s Capital Allowances Manual at CA11520, but had yet to receive an answer.
I thought you would be interested to know that HMRC have now (at long last) replied and I’m pleased to say that they have confirmed that a furnished holiday letting (FHL) business will continue to qualify for capital allowances on the following basis:
- CAA 2001, s 35 denies capital allowances on plant for use in a dwelling house used in an ordinary property business; and
- although accommodation used for FHL will always come within the definition of a ‘dwelling-house’, s 35 does not apply to a FHL.
Richard Mannion, national tax director, Smith & Williamson Ltd
