November 24, 2011 | By Nimbus |
If you currently own a furnished holiday let property, the following changes will apply from 6 April 2012.
For a let property to qualify as a furnished holiday let, the following tests will need to be met:
- Accommodation must be available to let as holiday accommodation for at least 210 days (140 days 2011/12).
- Accommodation must actually be let as holiday accommodation to the general public for at least 105 days (70 days 2011/12).
- The accommodation must not be let for periods of longer term occupation (greater than 30 days) for more than 155 days
A period of grace election can be made to smooth your lettings history if you have a property that reaches the required criteria in some years but not others.
And don’t forget loss relief changes. From 6 April 2011 it is no longer possible to set off furnished holiday let losses against other earnings or other property rental income. Losses can only be set off against income from the same furnished holiday let business.
If you wish to discuss any matters with us, our Nimbus Accounting expert is Paul Rawlings (01273 782 742).