Furnished Holiday Lets


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Client had started letting a holiday let, but only started letting March 2016, spent a number of months making the property ready (took a while as does a lot of the work himself and can only do it a weekends.

He therefore does not reach the criteria in 2015/16 although it has been pretty much fully let al this year to date.

Isd he able to claim capital allowances on the items bought to fit out the property?

I couldn't see anything about commencement in the HMRC guidance, there is a period of grace where actual lets temporarily fall below the threshld but the threshold has to be met in the earlier year?

Any help gratefully received



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By Portia Nina Levin
25th Jul 2016 13:38

Is it his first FHL? If it is, then the FHL business does not commence until the property is ready and being advertised for lettings (what I like to call being in a position to make sausages). If that is the case, you then need to apply the special opening years rules for determining whether it is an FHL.

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Replying to Portia Nina Levin:
By Smokoe Joe
25th Jul 2016 19:46

Yes, think I have unraveled these now, the letting test applied to first twelve moths regardless whether this straddles a tax year.

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