Letting of furnished holiday accomodation in home

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Client has an annexe to their home which has direct internal access and has its own external access. It has been used as part of the taxpayer's home since construction and is rated as part of the home. The kids have left and client is considering letting it out as a holiday let. Will the external access prevent rent-a-room relief. After reading PIM4004 I feel it would qualify for rent-a-room because external access is only 1 of 8 bullet points discussed at the foot of the page and my client meets all 7 other points. My other question is whether the internal access would prevent it qualifying as a FHL? I've looked through PIM4100 and can't see anything that prevents a FHL if there is internal access to the taxpayer's residence.

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By The Accountant
25th Sep 2018 10:51

Either way, you can not have both. Make up your mind to settle for Rent a Room relief OR Furnished Holiday Let. It would seem that either option is available to you as long as you can qualify on the number of days let for the FHL.

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Replying to The Accountant:
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By Portia Nina Levin
25th Sep 2018 11:19

The Accountant wrote:

Either way, you can not have both.

Why?

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