The following Owner-Managed Businesses guidance note by Tolley provides comprehensive and up to date tax information covering:
Whether or not a property qualifies as a furnished holiday let (FHL) can make an important difference to the taxation implications. In particular, the commercial letting of furnished holiday accommodation can benefit from the FHL regime.
See also Simon’s Taxes Division B6.4 (subscription sensitive) and HMRC Helpsheet HS253 .
From 22 April 2009, HMRC extended the treatment of UK FHLs to those within the European Economic Area (EEA) that would qualify if they were located in the UK. This treatment was non-statutory but kept the UK in line with EU law.
The measure was put on a statutory basis by FA 2011, which means that EEA FHLs are subject to the same tax treatment as UK FHLs.
The EEA comprises the 28 states of the EU plus Iceland, Liechtenstein and Norway.
An FHL is defined for income tax purposes by ITTOIA 2005, s 325 and for corporation tax purposes by CTA 2009, s 267 as a property that meets the three tests of availability, letting and pattern of occupation, as follows:
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