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Where Taxpayers and Advisers Meet

Losses on furnished holiday lettings

vf001
Posts:7
Joined:Tue May 23, 2017 11:43 am
Losses on furnished holiday lettings

Postby vf001 » Wed Jan 03, 2018 7:48 pm

What is the position re loss relief on furnished holiday lettings in the following scenario where Post 2011 losses which can only be c/f against profits from the same property?
The property had accumulated losses b/f for offset against future profits.
The property then lost its status as FHL due to not enough days let.
A few years later the property regained its status.
Can the losses from the previous period of FHL be utilised now or were they forfeit when the property lost its status?
Thanks in advance

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Losses on furnished holiday lettings

Postby robbob » Wed Jan 03, 2018 9:24 pm

This question reminds me of the time i read through some ridiculously complicated guidance notes post rules change trying to work out what losses could go where - i may have even given up trying to work it out. That's a pretty useless comment which i apoligise for when all you want is the answer.

Can the losses from the previous period of FHL be utilised now or were they forfeit when the property lost its status?
Hopefully the answer is in the following link - it does look promising on an initial sketchy read through of the info

https://www.gov.uk/hmrc-internal-manual ... al/pim2510

vf001
Posts:7
Joined:Tue May 23, 2017 11:43 am

Re: Losses on furnished holiday lettings

Postby vf001 » Sat Jan 06, 2018 7:38 pm

Thanks Robbob. In the absence of a specific rule I think there is enough here to suggest the losses are not forfeit. In this case, the FHL did not achieve enough actual days let when the limit was raised and so for a couple of years was treated as a normal let. Activity has now increased and it qualifies again so there was no actual cessation or even a reduction in activity, it just failed to keep up with legislative changes until this year. During the interim period when it was treated as a normal letting, the losses were available against other rental income and the b/fwd losses were put on ice. Hopefully it will be possible to bring the earlier losses forward now and utilise them which will be a bit of bonus in the light of the changes to interest relief on the rest of the portfolio of non-FHL!


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