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Furnished Holiday Let

Furnished Holiday Let & Adjusting for owner occupation

Client has a furnished holiday let in Cornwall which is rented for most for the year. During 2016/17 they occupied th property themselves for 5 weeks so we are looking at adjusting the expenses accordingly. Will HMRC expect a straight 5/52 add back of all costs e.g. even for instance an add back of a repair to the toilet caused by the tenant breaking this? What approach do other readers take?

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By 356B
23rd Jan 2018 11:28

The restriction is more likely to be as a part of the total letting period, not the year.

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23rd Jan 2018 11:45

Approach:
Step 1: identify any expenditure that is incurred wholly and exclusively for the purposes of the business.
Step 2: identify any expenditure where an identifiable proportion is so incurred.
Step 3: identify the amount of the identifiable proportion in step 2.
Step 4: add the expenditure identified in steps 1 and steps 3 together, and claim it.

That's what the legislation says.

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By SE
29th Jan 2018 12:44

Thanks

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