Furnished Holiday Let

One property individual private rooms

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I am looking to rent a property and sub-let the property with the permission of the landlord as individual private rooms subject to the occupancy conditions of Furnished Holiday Lets.

Can I class the property as a FHL if the rooms are provided separately?

Also can I claim the rent as an allowable expense?

Replies (14)

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Portia profile image
By Portia Nina Levin
04th Jan 2018 11:01

Are there no cooking facilities in these rooms? What are the poor buggers going to have for breakfast?

For FHL treatment to apply, you need to have a letting of accommodation. That accommodation must be furnished and must meet the conditions relating to availability, occupancy and pattern of use.

So in theory, yes, but I'm still concerned that the poor buggers are going to starve on their holidays. The alternative is that you're running a B&B/guest house, and asking a pointless question.

What does your accountant think?

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Replying to Portia Nina Levin:
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By upsource
04th Jan 2018 11:54

The rooms would be private rooms which would be listed as holiday accommodation individually. I would be using a website such as Airbnb.

The bathrooms and kitchen would be shared. As with the rest of the property, these would only be for the use of guests.

So does anyone know if I'd be able to claim rent of the property, breakfast items, and cleaning expenses on this?

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Replying to upsource:
Portia profile image
By Portia Nina Levin
04th Jan 2018 11:59

Your accountant will be best placed to advise on what costs are deductible each year on an item by item basis.

Why is FHL treatment relevant?

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Replying to Portia Nina Levin:
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By upsource
04th Jan 2018 13:00

I'm not sure what the benefits are of classing this as a FHL?

Does anyone know what the other routes are?

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Replying to upsource:
Portia profile image
By Portia Nina Levin
04th Jan 2018 13:15

On the assumption that you're loathed to engage an accountant, have you tried Googling it?

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paddle steamer
By DJKL
04th Jan 2018 11:11

Rent paid certainly an allowable cost.

Re treating as FHL, why would it be important?

As a personal rant re these operations (as Edinburgh is awash with them) presume you have considered issues like assessment to rates, fire system requirements , licences , occupant safety, safe escape in event of fire etc. etc?

Edinburgh Council is talking about getting far more proactive re this sort of activity as it is at times akin to operators running a B & B without one B and without all the necessary paperwork.

I hate to say that the first major fire/similar where it turns out someone has been operating this sort of operation out of a private house ,without considering such issues, will likely result in a jail term for the operator.

The proper operators are being stuffed by low cost, unsafe, competition but it will likely take a tragedy to make people see sense; there is a good reason hotels /bars etc have emergency lighting etc.

If you have dealt with all these issues then ignore my rant, if not, think carefully.

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Replying to DJKL:
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By upsource
04th Jan 2018 13:02

Absolutely, there's a lot to consider on safety grounds.

I already use the rent-a-room scheme to do Airbnb on my private property.

My operation is successful and popular and I'm looking to expand.

I'm not sure what the benefits are of classing this as a FHL?

Does anyone know what the other routes are, if I don't go class it as a FHL?

I'd need a route where I could pay the landlord tax and ensure I claim this amount back as an allowable (or other) expense.

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Replying to upsource:
By ireallyshouldknowthisbut
04th Jan 2018 13:17

The best route would be to hire an accountant

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Replying to ireallyshouldknowthisbut:
Portia profile image
By Portia Nina Levin
04th Jan 2018 13:21

Or Google it.

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Replying to Portia Nina Levin:
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By upsource
04th Jan 2018 13:42

I've googled it but would like to draw upon any friendly expertise which is offered here to inform my decision.

If I proceed, of course I would appoint an accountant.

I understand that FHL losses can be offset against FHL profits. I haven't been able to find anything on the tax pathways of renting property to offer as letted holiday accommodation.

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Replying to upsource:
By ireallyshouldknowthisbut
04th Jan 2018 13:58

Whats a "tax pathway"? is that like a toll bridge?

I wouldn't put one of those out the front, it would put off the punters.

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Replying to ireallyshouldknowthisbut:
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By upsource
04th Jan 2018 14:04

Thanks for your insightful response. I hope you take great pleasure for being of such assistance.

I imagine that it is very clear that tax is not my area of expertise and that I'm posing a question here to seek advice.

Any friendly advice would be much welcomed.

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Replying to upsource:
Portia profile image
By Portia Nina Levin
04th Jan 2018 14:19

Friendly advice: never shave your nuts with a cut-throat razor.

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