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Furnished Holiday Lets and the 105 day requirement

Furnished Holiday Lets and the 105 day requirement

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Client has converted one outbuilding into 2 small apartments which are being let as holiday lets.

They are both available for let as holiday lets for the full year.

They have asked if the 105 days of letting in a year requirement applies to each individual apartment or to the 2 together. So lets say one is let for 75 days and one for 90 days so a total of 165 days for the business would that meet the test?

My gut feeling is probably it has to be 105 days per apartment but thought it worth asking.

Also if  they are available and advertised for let for the full year but they just don't get enough lettings to get up to 105 days will that mean they just won't qualify as a FHL? I know there is a Period of Grace election but that can only go on for 3 years.

I believe they can make a Period of Grace election but that is time limited i

Replies (6)

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By Accountant A
01st Oct 2019 15:33

You might want to read the HMRC guidance

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By The Dullard
01st Oct 2019 15:50

Fuchmii!

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By Tax Dragon
01st Oct 2019 16:04

Remember to count 4 July as two days if both apartments were let at midnight that day.

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By arthurallan
01st Oct 2019 16:23

HMRC's guidance says that if you let more than one property then you can use averaging to determine whether the 105 day condition was met.

As these are 2 apartments contained within one property I just wondered if there was some scope for a flexible interpretation of the term property in their guidance?

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Replying to arthurallan:
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By The Dullard
01st Oct 2019 16:25

What does the legislation (which doesn't use the word "property") say?

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Replying to arthurallan:
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By Tax Dragon
01st Oct 2019 16:51

And read sentences etc to the end. Although the relevant definition of "averaging" probably does start with a reference to "adding", it goes on to require a division.... or is this where you are being "flexible"? You're dividing by "one property"?

Else I'm struggling to understand your ingenuity.

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