Buying a Furnished Holiday Letting (FHL) rather than an ordinary residential property for letting out, can bring you a number of tax advantages, including the ability to claim mortgage interest costs as a tax deductible expense, capital allowances, business rate relief, and capital gains tax relief.
To qualify as a Furnished holiday letting, a property must meet certain conditions – including that it must be furnished (the clue is in the name!). In addition, it must be available on short term lets, be made available for a given number of days for the year, and actually be let out for a certain number of days in the year.
With the increase in staycation holidays due to Coronavirus, the idea of investing into a holiday let rather than a residential property is becoming more appealing.
In addition, you can also enjoy the property yourself – for the odd week of the year!
If you are looking to invest in a property, and would like to know more about the tax advantages of choosing a Furnished Holiday Let over a residential property, then get in touch with us at AJ Accountancy.
