Readers' Forum - Furnished failure

Furnished failure

My client has owned a property that has been used as a furnished holiday let for a few years. For reasons of which I’m not yet entirely certain it seems likely that the conditions for such a property were not met in 2019-20. Given the coronavirus crisis and ongoing lockdown it seems highly probable that they will not be met in this year as well.

My question relates to the capital allowances that have been claimed on furniture white goods and the like. I assume that these cannot be claimed against the rental income in 2019-20 but what do I do? Do I simply carry the written down value forward until the next year the property does qualify as a furnished holiday let or must I make a balancing adjustment? And how do...