Can you get PPR relief on a FHL

Can you get PPR relief on a Furnished Holiday Let

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Client has one home only that he lives in for part of the year as his main residence.

He travels a lot for the rest of the year and he has started to rent his home out for a lot of the time he is away. To the extent he will meet the criteria for a FHL.

If he eventually sells the property will he be able to claim PPR relief for the periods he occupies the house and also could some of the periods he is away be accumulated to get relief as periods of absence of up to 3 years?

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paddle steamer
By DJKL
13th Nov 2017 22:52

Never had to deal with, but insofar as for times it is used personally it is not a FHL surely whilst available as a FHL (210 days) it is not a PPR, however that it merely applying quasi logic rather than interpreting rules.

HMRC Guidance, for what it is worth,

"If the dwelling house has not always been your only or main residence, you will need to split the gain. When calculating the proportion of the gain eligible for relief, you multiply the gain by a fraction equal to the periods of occupation (including the final 18 or 36 months where appropriate) divided by the period of ownership (both periods starting at 31 March 1982 if the house was owned before that date). You do not introduce valuations of the property at the dates of changes of use."

https://www.gov.uk/government/publications/private-residence-relief-hs28...

https://www.gov.uk/government/publications/furnished-holiday-lettings-hs...

The 210 days available as a FHL would appear to suggest that the max PPR relief (ignoring last 18 months) will be 155/365 of each year.

Remember will also have to deal with actual occupancy at 105 days and keep an eye on 31 day lettings.

I suspect it might be possible but juggling days will be pretty tricky.

Here is another similar thread:

https://www.accountingweb.co.uk/any-answers/mixed-use-of-property-ppr-th...

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By arthurallan
14th Nov 2017 12:39

Many thanks; the link was very helpful too

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