I have been asked to do the self assessment for a new holiday letting that was previously rented out to a tenant.
The tenant caused havoc and was evicted last year, owing a large amount of rent. The owner then made the decision to turn it into a holiday letting.
As far as I can see, it is now a trade for certain purposes rather than a standard property let and different tax rules apply. I can see capital allowances can be claimed on furniture and fixings, white goods etc but can't see if things like bedding, crockery, pots and pans are etc.
No income was received from the property in the tax year 2013-14
Looking at the occupancy ruling (has to be let for 105 days in any tax year) I can see there is a grace period but it says that in the previous tax year the occupancy level must be met for the grace period to apply. So can the first 12 months apply from Sept 2013 - August 2014 in order to meet the occupancy period or do I need to follow the tax year to 5th April 2014? If the latter I can't see how any expenditure can be claimed because the occupancy rules haven't been met.
