Furnished Holiday Letting (FHL) is a separate category of properties apart from residential and commercial properties. HMRC deems FHLs as a trade – as appose to investments in many other cases.
Some FHL properties that meet specific qualifying conditions could get additional tax benefits compared to other lettings.
In order to qualify as FHL, the property (furnished) must be available for commercial lettings as holiday accommodation to the public for at least 30 weeks (210 days) of the tax year. And, the property must be let for at least half of this period. Any longer-term lets (more than 31 days) to friends or family is not counted towards the 105 days. All lets must be done on a commercial basis. For example, there must be an intention to make a profit through a commercial let.
