Dear Sirs,
INTERPRETATION OF PERIOD OF LONGER TERM OCCUPATION
I let out a property for short term rentals via a major letting firm. When I signed up with them I was told that all their lets were for periods of 31 days or fewer so that they would conform to the furnished holiday lettings rules. The monthly statements I receive show a separate booking reference for each month, even if the tenant is the same person for several months in a row, presumably so that there is never a continuous let exceeding 31 days. I have queried this interpretation with the letting firm and was told "all our leases are for no longer than 31 days which means that you do conform to a Furnished Holiday Let".
I've looked up the rules in the Income Tax (Trading and Other Income) Act 2005, s325 Meaning of "qualifying holiday accommodation". Subsection 6 states "For the purposes of this section a 'period of longer term occupation' is a continuous period of more that 31 days during which the accommodation is in the same occupation otherwise than because of circumstances that are not normal". It seems that the letting firm believe that issuing separate leases, each for fewer than 31 days, means that a lease of eg 93 days to the same person, still conforms to the rules for furnished holiday lettings because it is not continuous. I was also told that this is standard practice throughout the industry. The implication was that HMR&C were aware of this interpretation and accepted it as valid.
Do I have a furnished holiday let or not? I'd be interested to hear the views of your readers.
Regards,
Learner77
- Home
-
Tax News
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice and Methods
- Professionals in Practice & Industry
- General
- TaxationWeb
-
Tax Articles
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings and Investments, Pensions and Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice & Methods
- Professionals in Practice & Industry
- General
- Tax Tips
-
Tax Forum
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations and Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practices & Methods
- Professionals in Practice & Industry
- General
- Tax Jobs
- Get in Touch