I’d appreciate some guidance on a couple of points, probably fairly easy questions for the more seasoned in this area, especially with the rise of Airbnb.
I have a client who “Airbnb’s” a small barn and a small log pod in the grounds of his main residence, he started the letting in the 2018/19 tax year. Individually the barn and pod do not meet the 105 day requirement, each are in the 80-90 day range for the first 12 months.
My first question is do they have to be treated separately, or can they be treated as one and therefore combine the number of days to reach the 105 days? PIM4110 distinguishes between different cottages but I feel this is different as its all on one estate. If they do have to be treated separately, it would make it fairly complicated if one meets the requirements and the other doesn’t as they are run as one business.
Individually the barn and pod will both meet the FHL requirements for 2019/20, the only reason it didn’t for 2018/19 was because the business was being built. So looking at grace periods I read online that you can only elect if the accommodation met the requirements in the previous tax year, but looking at 326A I can’t see that? Although it is late and it has been a looong week.
On a different note, I can’t see how rent a room relief could be claimed for the barn, with a straight face at least, not really sure the pod can be called a separate residence but then again if caravan or houseboat is a separate residence, I guess a small pod could be..
If you have any guidance or cases which would help it would be appreciated.