Furnished Holiday Let - Tax Questions

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    Furnished Holiday Let - Tax Questions

    Hi I have a property that I'm letting through a short term holiday letting company. All seems good so far, but can someone let me know how the tax works on this? Its located in Brighton if that makes a difference?

    Also as this is a "furnished Holiday Let" what can I get away with in terms of mortgage interest, initial costs to furnish the place etc.

    Thanks,

    ChaseNRainbows

    #2
    Best to phone in and ask a tax inspector.

    But, I believe the position includes:
    • To get any tax relief, the property has to be available to let for at least 210 days each tax year and actually let at least 105 days each tax year.
      if property is bought part-way through a tax year, then the above must apply for the 12 months from when it is purchassed (or maybe from when first let)
    • Finance costs are fully deductible.
    • Capital allowances are available.
    Read PIM (property income manual https://www.gov.uk/hmrc-internal-man...-income-manual).
    All of it is relevant, but PIM4100 has rules that apply only to furnished holiday lets.

    Comment


      #3
      Personally, I wouldn't take advice from HMRC, a) the people manning the phone aren't qualifies and b) it's like taking legal advice from the police about a criminal matter.

      You need to sit down and talk it through with an accountant in some detail (I'd imagine Brighton has quite a lot of them with experience in this field).
      You should look carefully at mortgages as they're not the same as BTL lending.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

      Comment


        #4
        Originally posted by jpkeates View Post
        Personally, I wouldn't take advice from HMRC, a) the people manning the phone aren't qualifies and b) it's like taking legal advice from the police about a criminal matter..
        1. You speak to a tax inspector, not the person that answers the phone (phone your own tax office, or the one local to you).
        2. Get the tax inspector to put the advice in writing to you.

        I have done this several times.
        Once I was given unsolicited information that allowed me to claim about £3000 a year deductions on holiday lets of a caravan.

        Which reminds me: losses on furnished holiday lets can be offset against other income (unlike losses on residential lettings).

        Comment


          #5
          BBC Moneybox today suggested new rules in Oct will require LL to spend min 1 night in holiday Let to gain any tax advantage for duration of Let.

          Comment

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