When it comes to let properties, furnished holiday lettings (FHL) are a special case and benefit from a number of concessions not available to standard lets. The concessions are only available if the property meets the tax tests to qualify it as a furnished holiday letting – the fact that it may be let out for holiday use in itself is not sufficient.
One of the benefits of being classed as a furnished holiday let for tax purposes is that plant and machinery capital allowances can be claimed. This is something which is not available to a landlord of a residential long-term let.
What is a FHL?
To be classed as a FHL for tax purposes, the property must be let furnished on a commercial basis and:
- it must be available for letting for at least 210 days in the tax year;
- it must actually be let for 105 days in the tax year;
- it is not let for lets of 31 days or more for more than 155 days in the tax year.
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