Meg Saksida outlines the current tax position of furnished holiday lettings.
Furnished holiday lettings (FHLs) landlords have had a tough run lately, and the Covid-19 pandemic has not helped at all.
With international travel curbed, it might have been envisaged that the home-grown (at least) FHL would be booming, but the several lockdowns that have happened consistently throughout the UK during the 2020/21 tax year put paid to that. The ban on international travel for both UK residents and internationally has meant that an FHL in the EEA will have also suffered from the lack of guests and thus profits.
Furnished holiday lettings vs ‘normal’ let property
As a quick reminder, FHLs are entitled to three main taxation benefits. The first is the ability
