Furnished Holiday Let (FHL) Criteria
To qualify for favorable FHL tax benefits, a property must be available to let for 210 days a year and actually let commercially for at least 105 days.
Operating a property as a Furnished Holiday Let (FHL) used to offer massive tax advantages over standard buy-to-lets, including exemption from Section 24 and the ability to claim Capital Allowances on furniture and fittings.
However, to qualify as an FHL, strict occupancy rules applied. The property had to be fully furnished, available for commercial letting to the public for at least 210 days in the year, and actually let as holiday accommodation for at least 105 days in the year.
Recent Legislative Changes
It is critical for investors to stay updated, as the UK government has recently moved to abolish the special tax regime for FHLs, bringing them in line with standard residential lettings to curb the loss of long-term rental housing stock in tourist hotspots.