Do You Have an FHL or an SA?
The question of is it a furnished holiday let or serviced accommodation is one that is frequently asked and in this episode Shaz talks in detail about the criteria and rules and answers questions from his live audience about specific scenarios and the tax implications There is invaluable advice and learning for anyone who is involved in FHL and SA in this episode which is a must for anyone involved in letting property
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Show Notes
The question of is it a furnished holiday let or serviced accommodation is one that is frequently asked and in this episode Shaz talks in detail about the criteria and rules and answers questions from his live audience about specific scenarios and the tax implications
There is invaluable advice and learning for anyone who is involved in FHL and SA in this episode which is a must for anyone involved in letting property
KEY TAKEAWAYS
- The property has to be available for commercial letting for 210 days charging the market rent
- It has to be rented out for at least 105 days and if it’s let for more than 31 days consecutively and those days add up to 155 days over the year you don’t qualify as a furnished let
- The aim of furnished holiday lets is short-term letting and you will be penalised by HMRC if you are letting outside of the rules
- If you let out a property for more than 28 days to the same person you don’t charge them VAT and it becomes a short-term let
- With more than one unit you can use the days from other properties
- If you breach the 155 days rule you lose several tax benefits including section 24, capital allowances and entrepreneurs' relief
- Serviced accommodation losses can be used against serviced accommodation profits
- Additional services such as meals, trips out, games room, swimming pool and facilities for children and pets are what can move you to SA
BEST MOMENTS
‘It’s a pretty generous system for people’
‘Either side of the one year of grace you’ve got to qualify’
‘Now you are more like a hotel’
‘The more additional services you have the safer you are’
VALUABLE RESOURCES
ABOUT THE HOST
Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.
Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultations he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.
He is a huge advocate of having multiple streams of
income. He has written a number of business books and regularly contributes articles to mainstream media outlets.
You can find Shaz on: