Furnished Holiday Letting - interest deduction

Furnished Holiday Letting - interest deduction

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Are FHL properties safe from the newest finance cost relief restrictions for landlords of residential property?

Please forgive this duplication of posting, as my original post gets lost in responses to Rebecca Benneyworth's summary. 

FHLs are businesses for many tax purposes, though the reported on the property income pages.  I believe the Chancellor is targeting the buy-to-let market for domestic housing, not FHL holiday businesses.

The Budget states:

  • The government will restrict the relief on finance costs that landlords of residential property can get to the basic rate of income tax

For yesterday's announcement, does apply to a FHL property?

I think not, so the financing of  qualifying holiday properties will still be eligible for usual business finance cost relief, even if additional finance has been raised on the landlord's on home? (subject to the income tax relief caps)

Any pointers on this?

Replies (2)

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By Steve Kesby
09th Jul 2015 13:40

No

The TIIN says that FHLs are excluded from the measure, in its opening paragraph.

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By JimH
09th Jul 2015 14:21

I was really hoping you were around

Thanks, Steve!

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