Commentary

B6.405 Losses of furnished holiday lettings

Business tax
Business tax | Commentary

B6.405 Losses of furnished holiday lettings

Business tax | Commentary

B6.405 Losses of furnished holiday lettings

FHL losses are treated as trade losses1 but it is not possible to claim relief for the losses against total profits for corporation tax purposes, or against general income or under terminal loss relief for income tax purposes.

The profits or losses of FHL properties must be calculated separately from any other rental business2 and losses made in a qualifying UK or EEA FHL business can only be set against income from the same UK or EEA FHL business3.

This means that losses made on an individual UK FHL property may be set against profits

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