Furnished Holiday Lets
If you already rent your property on a commercial basis for holiday letting, or are considering doing so, it may qualify as a furnished holiday let. If it meets the conditions set by HM Revenue & Customs there are a number of tax advantages from which you may benefit.
We have a specialist property team that can guide and advise you through all the stages of operating your holiday letting business.
Read our guide to the tax effects on your holiday let due to Covid 19
What is a Furnished Holiday Let?
To qualify as a furnished holiday let a property must:
• be located in the UK or European Economic Area (EEA)
• be let on a commercial basis with a view to making a profit
• be furnished
• pass the qualifying tests
We can support you with:
- Determining if your property qualifies as a furnished holiday let
- Calculating relevant occupancy periods for the first and last year of rental
- Applying the period of grace rules in quieter years
- Claiming Capital Allowances in a tax efficient way
- Advice on the best way to structure mortgage finance for tax purposes
- Advising you on ownership where you are a higher rate tax payer
- What you have to tell HM Revenue & Customs and how to complete your tax return
- Advising you on what expenses you can claim
- Reviewing your VAT situation and planning to relieve the burden
- How to calculate the tax due when properties sell and claim the maximum deductions and reliefs
- Planning to utilise Entrepreneurs Relief on sale
- How FHL property ownership affects your position for inheritance tax