Form 11 how to calculate Capital Allowances

[Guideline]

Hi I am just wondering how to calculate Capital allowances. My questions are,

Q1. Are all capital allowances calculated as one figure and then included in the form as one figure, for example fridge 100, sofa 900. Total capital 1000. So I enter the 1000 figure. Or are they included as individual items.

Q2. I started renting in 2023 the fridge was bought in 2017 for 600. Is it the 600 figure I put down for the capital expense that I can claim 12.5 % off or is it the actual value of the fridge as of today.

Hope those questions make sense. Any thoughts much appreciated.

 

[Villaines]

So it will be one figure. You need to assess what the market value of the fridge was in 2023 when you started letting the property. You claim one eighth of that value for the first 8 years of renting (not the original cost). A 5-year old second hand fridge might have a lower value than your original cost but there may have been inflation and other things to consider. Strictly speaking Revenue could try to say that it is pre-letting expenditure and thereby non-deductible which is an over-zealous reading of the legislation.

The USC legislation is not nice when it comes to these capital allowances. They're not deductible against USC. Whereas repairs and maintenance are. Which is a bit sneaky. The USC legislation treats them in a similar way to historical property acquisition capital allowances, whereas clearly they are quite different.