{"id":506,"date":"2019-06-05T00:00:00","date_gmt":"2019-06-04T23:00:00","guid":{"rendered":"http:\/\/duffyregan.co.uk\/index.php\/2019\/06\/05\/do-you-own-a-holiday-let-property\/"},"modified":"2019-06-05T00:00:00","modified_gmt":"2019-06-04T23:00:00","slug":"do-you-own-a-holiday-let-property","status":"publish","type":"post","link":"http:\/\/duffyregan.co.uk\/index.php\/2019\/06\/05\/do-you-own-a-holiday-let-property\/","title":{"rendered":"Do you own a holiday let property?"},"content":{"rendered":"<p>There are a number of tax incentives that you can take advantage of if you own and let a Furnished Holiday Lets property (FHL). They include:<\/p>\n<ul>\n<li>you can claim Capital Gains Tax reliefs for traders (Business Asset Rollover Relief, Entrepreneurs&rsquo; Relief, relief for gifts of business assets and relief for loans to traders),<\/li>\n<li>you are entitled to claim capital allowance deductions for items such as furniture, equipment and fixtures, and<\/li>\n<li>any profits earned from holiday lets count as earnings for pension purposes.<\/li>\n<\/ul>\n<p>You will need to account for your holiday lets properties separately from any other rental properties and you will need to comply with the various FHL rules. They include:<\/p>\n<ul>\n<li>The property must be in the UK or in the European Economic Area (EEA) &#8211; the EEA includes Iceland, Liechtenstein and Norway;<\/li>\n<li>The property must be furnished. This means that there must be sufficient furniture provided for normal occupation and your visitors must be entitled to use the furniture provided.<\/li>\n<li>The property must be commercially let (you must intend to make a profit). If you let the property out of season to cover costs, but did not make a profit, the letting will still be treated as commercial.<\/li>\n<li><a name=\"_Hlk9340184\">All your FHLs in the UK are taxed as a single UK FHL business and all FHLs in other EEA states are taxed as a single EEA FHL business. You&rsquo;ll need to keep separate records for each FHL business because the losses from one FHL business cannot be used against profits of the other.<\/a><\/li>\n<\/ul>\n<p>There are also strict rules on occupancy. To secure the FHL tax benefits you will need to let your FHL for a certain, minimum number of days each year. The occupancy rules, set on a tax year basis, are:<\/p>\n<ul>\n<li>Your property must be available for letting as furnished holiday accommodation letting for at least 210 days in the year.<\/li>\n<li>You must let the property commercially as furnished holiday accommodation to the public for at least 105 days in the year.<\/li>\n<\/ul>\n<p>Do not count any days when you let the property to friends or relatives at zero or reduced rates as this is not a commercial let.<\/p>\n<p>Do not count longer-term lets of more than 31 days, unless the 31 days is exceeded because something unforeseen happens. For example, if the holidaymaker either: falls ill or has an accident and cannot leave on time or has to extend their holiday due to a delayed flight.<\/p>\n<p>If you do not let your property for at least 105 days, you have two options (known as elections) that can help you reach the occupancy threshold.<\/p>\n<p>As you can see, there are a few hoops to climb through to achieve FHL status, but the tax rewards for doing so are significant.<\/p>\n<!-- -->","protected":false},"excerpt":{"rendered":"<p>There are a number of tax incentives that you can take advantage of if you own and let a Furnished Holiday Lets property (FHL). They include: you can claim Capital Gains Tax reliefs for traders (Business Asset Rollover Relief, Entrepreneurs&rsquo; Relief, relief for gifts of business assets and relief for loans to traders), you are [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-506","post","type-post","status-publish","format-standard","hentry","category-uncategorised"],"_links":{"self":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/506","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=506"}],"version-history":[{"count":0,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/506\/revisions"}],"wp:attachment":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=506"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=506"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}