Amidst a rising demand for holiday lets as the UK prepares for a ‘staycation’ boom this summer, the Treasury have announced that they intend to crack down on taxpayers incorrectly claiming their properties qualify as Furnished Holiday Lets.
Furnished Holiday Lets are exempt from paying council tax and instead pay business rates, as well as attracting a number of generous tax reliefs, such as being able to claim capital allowances.
What’s classed as a Furnished Holiday Let?
A property is required to meet the following criteria during a tax year in order for a claim to be made for it to be classed as a Furnished Holiday Let:
• The property must be furnished and situated in the UK or any other state in the European Economic Area
• The property must be available for commercial letting for at least 210 days of the relevant tax year
• The property must be let out for at least 105 days in the tax year and the property must not be occupied by the same tenant for a continuous period of more than 31 days at a time (therefore long-term furnished lets will not quality)
If you have any concerns or queries about your own Furnished Holiday Let, contact our Private Client Services team on 01788 539000.
Check out more of our blog articles here: www.magma.co.uk/blog.