For those of you lucky enough to have furnished holidays lets in the UK or in the European Economic Union (plus Iceland, Norway and Liechtenstein, then you must ensure that it is available for rent:
– at least 210 days in a 12 month period;
– actually let for 105 days in a 12 month period;
– no occupation for more than 31 consecutive days, and these longer occupations cannot account for more than 155 days of the year.
The let must be on a commercial basis so you intend to make a profit from the let. Therefore lets to friends and families at zero or a notional rent will mean that the property is not a qualifying holiday let. A furnished holiday let means there has to be sufficient furniture in the property for normal/full occupancy. You can’t get away with just putting a bed in the master bedroom, and the property is rented out as a 3 bedroom let.
The furnished holiday let is treated like a property business, but you are able to claim capital allowances on the furniture and equipment that goes into the property. This is different from normally property lets, which is why there are two sections on the tax return. The income and accounts for furnished holiday lets and property rental must be kept separately.
Always talk to your accountant before acting on any advice. If you’d like to talk to us about your accounting requirements, please complete the contact form >>>> HERE <<<< and we’ll get in touch.