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Where Taxpayers and Advisers Meet

Sale of Furnished Holiday Let

alexanderrabbit
Posts:9
Joined:Sat Jan 26, 2013 4:41 pm
Sale of Furnished Holiday Let

Postby alexanderrabbit » Mon Jul 18, 2022 7:30 pm

I want to determine whether my FHL will qualify for BADR after 2 bad covid years.

After many years of qualifying and reaching the 105 days let criteria, I have had to do a period of grace for the last 2 covid years.

It’s now the third year… I currently have the property on the market. Since April I have let for approximately 40 days so far.

Will it qualify for BADR?

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Sale of Furnished Holiday Let

Postby pawncob » Tue Jul 19, 2022 11:23 am

What makes you think it won't?
In the case where an individual has one property that is let as a holiday let and decides to stop letting and sell the property, relief will be available where:

the property was used as a FHL at the time that the FHL business ceased;
the business was owned by the individual making the disposal for a period of two years immediately prior to the cessation of the business; and
the disposal takes place within three years of the cessation.
The rules allow the landlord three years to sell the property once the FHL business ceases without losing the relief.
With a pinch of salt take what I say, but don't exceed your RDA

alexanderrabbit
Posts:9
Joined:Sat Jan 26, 2013 4:41 pm

Re: Sale of Furnished Holiday Let

Postby alexanderrabbit » Tue Jul 19, 2022 8:16 pm

I have read that in the final year of letting, they use the last 12 months.

If I cease in July that will mean they use Aug 21 to July 22? Would it include the election days?

Last year wasn’t great and I did an election. The guidance doesn’t refer to year 3. It simply says if you do t reach the criteria in year 4 you cease to be FHL?

alexanderrabbit
Posts:9
Joined:Sat Jan 26, 2013 4:41 pm

Re: Sale of Furnished Holiday Let

Postby alexanderrabbit » Tue Jul 19, 2022 8:19 pm

If your property does not reach the threshold by the fourth year, after 2 consecutive period of grace elections, it will no longer qualify as a furnished holiday letting.

Period to which the occupancy conditions are applied - for IT cases
For a continuing let, apply the tests to the tax year - that’s from 6 April one year to the 5 April the next.

For a new let, apply the tests to the first 12 months from when the letting began.

When the letting stops, apply the tests to the 12 months up to when the letting finished.


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