Introduction
Furnished Holiday Lets (FHLs) are once more in the news with the
Pawson case heard in the Upper Tribunal where the Judge has decided
that a furnished holiday let was not eligible for business property
relief (BPR) which would have reduced inheritance tax by 100% on
the value of the FHL property.
Despite the uncertainty on BPR, individuals or companies that
run a qualifying furnished holiday let business can benefit from a
number of other tax breaks. FHLs may be in either the UK or the
EEA, but FHLs in the UK will be treated as comprising a different
business to FHLs in the EEA.
The conditions for furnished holiday lets
- The business must be carried on a commercial basis with a view
to profit.
