| Furnished Holiday Lettings
|
Income from Furnished Holiday Lettings is treated as trading income although it is assessable under Schedule A (thus Class 4 National Insurance Contributions are not payable).
|
| It is kept separate from all other rental income. |
Profits are treated as earned income
Losses relieved as trading losses
Capital Gains Tax reliefs are available e.g. rollover and retirement relief
Taper relief as a business asset will apply (after two years ownership an effective tax rate of 10%) |
The property must be let in the UK
The property must be furnished and the tenant must be entitled to the use of the furniture.
The property must be let on a commercial basis with a view to realising profits. |
The property must be available for letting at least 140 days in a tax year, and
must be actually let for 70 days during that period,
and
not normally occupied by the same person for more than 31 consecutive days during any 7-month period (must include period when let). |
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