Business Pre-Trading Costs

If your business is as a sole trader or partnership you can claim for purchase expenses before you start to trade. Your expenses could be Revenue or Capital in nature.

Your Revenue expenses are allowable in the year of purchase. Capital expenses are allowable over the life of the item. However, with the Annual Investment Allowance you may be able to claim all the amount in the year of purchase.

If you have a Furnished Holiday Let, HMRC considers this a business and allows you to claim pre-trading expenses and use the Annual Investment Allowance. HMRC will not consider a residential let a business.

Information correct as at 23rd September 2020. If you need further advice in this area please contact us at or by phone on 07473 938867