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2003

Furnished Holiday letting - grace period election

In year 1, the Mr A meets the hurdle rate on occupancy for the property to be defined as a FHL for tax purposes.  However, despite a genuine intention to let the property he fall short in year 2, and 3.  However, he can make an election for a period of grace in each of these years.  Now, if he again met the occupancy hurdle rate in year 4, but fell short, can he make a period of grace election again or is there a limit to the number of times you can make this?

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24th Jul 2012 15:30

Only two consecutive years can have a period of grace. There is an example of this here :

http://www.hmrc.gov.uk/helpsheets/hs253.pdf

Regards Peter

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