Furnished Holiday Lettings in first 12 months?

Furnished Holiday Lettings in first 12 months?

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Individual buys holiday cottage in 2010/11 tax year but this is let to a company for 12 months so doesn't qualify for FHL tax treatment.  Part way through 2011/12 tax year lease to company is up and property "kitted out" for tourists and bookings taken and actually available and let out to tourists for part of the remainder of the year but < 70 days actual occupancy.  Now, the period to which FHL tests are applied are, I understand, first 12 months from when tourist letting began which takes us into 2012/13.  The old rules for 2011/12 require 70 days whilst the new rules for 2012/13 require 105 days to meet FHL tax treatment.  To determine whether this is a FHL for tax for 2011/12 presumably it is the 70 day test which must be met?

Comments greatly appreciated

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Teignmouth
By Paul Scholes
13th Jul 2012 17:12

Yes

Hi - the legislation refers to "relevant periods" as being tax years or periods that commence in a tax year and the latter take the rules that apply then.

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