Are there disadvantages in claiming capital allowances for someone running a furnished holiday lettings (FHL) business? 

Arthur replies: 

The very obvious advantage in claiming is that the person can reduce their taxable profits, resulting in less tax being paid. But it is often not appreciated that when the FHL business ceases, the capital allowances can be clawed back by means of a balancing charge. The business ceases when: (a) the property is sold; (b) the property is used for private occupation; or (c) the letting condition is not met even with the ‘averaging’ and ‘period of grace elections’. See HMRC’s Property Income manual at PIM4140 (https://tinyurl.com/yjcpawan and pim4140 ).