Can I keep declaring for the outstanding capital allowance on form 11 for the next 7 years or is this unused capital allowance written off?
What happened to the F&F? Did you include them in the sale of the property or did you take them out of the property and keep for your own use or sell them privately?
Assuming:
- You have 7/8 unclaimed allowances, which amount to €3,000, then you bought the items for approx. €3,500 a year previous to the sale.
- You sold the property for say €400,000.
- The F&F items were included in the sale.
- Leave out estate agents fees, solicitor's costs etc.
When you were doing your CGT return, you would have had to calculate your net sales proceeds. The appropriate figure for net sales proceeds in this scenario would be €400,000 less what those non-capital items were worth.
If we assume that on the date of sale the value of the items was around €2,000, then your net sales proceeds for the CGT calculation is €398,000.
You have effectively gotten €2,000 of value back out of what you spent on the F&F. If the tax written down value of the F&F was €3,000 at the time of sale, then I
think (note my qualification) that you can claim a balancing allowance of €1,000 (€3,000 less €2,000) against income tax. You wouldn't claim €3,000 over the next 7 years I'd imagine.
This is how I would reason it out but it's a grey area for me and I'm not qualified to guide you. It depends on what happened to the items and what you put in your CGT return for net sales proceeds to calculate the capital gain (or loss, if applicable).