Tax Alert 30th April 2019 – should you invest in Furnished Holiday Letting?
FURNISHED HOLIDAY LETTING – WHAT’s IT ALL ABOUT?
Residential landlords have certainly been taking a tax bashing over recent years. Many landlords may now need to assess whether they can continue with so many tax charges now levied upon them. It comes as no surprise that attention is focusing on different ways in which to invest in property. One area that has been grabbing attention is Furnished Holiday Letting (FHL).
IS FHL THE ANSWER?
There is no question that if you have a property that can be let under the conditions to qualify for FHL, there are some attractive tax benefits.
Unfortunately, for many existing landlords FHL will not be a quick fix, as there are strict rules for meeting the FHL qualifying conditions.
The main clue lies with the description holiday letting, rather than having a few long-term tenants, the property must have multiple short lets.
Your existing property may not be suitable to qualifying for FHL but if you are a prospective investor or an existing investor looking to invest in a new property, FHL may be worth considering. Perhaps you already own or have inherited a holiday property that you are not making full use of, with a bit of planning you may be able to turn it into a profitable business.
If you are looking for further information about FHL, Paul Southward has produced two guides to provide you with more information about FHL, the rules and the tax advantages.
The topic of FHL has recently become hot gossip at the moment but as is often the case they may not always be painting the full picture.
For a summary of the qualifying conditions for FHL, download Paul’s guide here:-
And for a summary of the main tax advantages see Paul’s guide here: –
For more information contact Paul Southward.