Owning and managing furnished holiday lets can be a rewarding venture, but it also comes with unique tax considerations. Our Property Tax Planning services for Furnished Holiday Lets are designed to help you navigate the complex world of holiday property taxation while optimising your financial outcomes.

Qualifying furnished holiday letting businesses can attract valuable tax advantages when compared to standard buy-to-let businesses:

• Tax Deductions: QFHL businesses can deduct a wide range of expenses, including mortgage interest, property maintenance, cleaning, and utility bills, reducing their taxable income.
• Capital Allowances: Owners of QFHL properties may be eligible for capital allowances on items like furniture, fixtures, and equipment, further reducing their tax liability.
• Entrepreneur's Relief: If you sell your QFHL property, you might be eligible for Entrepreneur's Relief, which can significantly reduce the capital gains tax on the sale.
• Business Rates Relief: Some QFHL properties may qualify for business rates relief, reducing the local property tax burden.
• Loss Relief: QFHL businesses may be able to offset losses against other income in the same tax year, potentially reducing overall tax liability.
• Inheritance Tax Benefits: QFHL properties may qualify for Business Property Relief (BPR) or Agricultural Property Relief (APR), reducing their inclusion in an estate for inheritance tax purposes.
• VAT Benefits: Depending on your turnover, you may have to register for VAT, but this can also allow you to claim back VAT on certain expenses related to your QFHL property.
• Pension Contributions: Income generated from QFHL properties can be used to make pension contributions, potentially reducing your taxable income.
• Annual Investment Allowance: If you make capital investments in your QFHL property, you may be eligible for the Annual Investment Allowance, allowing you to deduct the full cost of the investment from your taxable income.
• CGT Reliefs: In addition to Entrepreneur's Relief, QFHL properties may also qualify for other capital gains tax reliefs, such as Roll-Over Relief and Hold-Over Relief, under certain conditions.

Tax laws and regulations can be complex and are subject to constant change, so we’re here to help you navigate the tax landscape and to optimise your taxation with full legal compliance. Whether you're a seasoned holiday let owner or just starting your venture, our Property Tax Planning services are your key to achieving tax efficiency, maximising rental income and ensuring compliance. Let us help you make the most of your furnished holiday let properties, so you can enjoy the rewards of your investment with confidence.