The furnished holiday letting rules detailed in the following commentary are abolished by Finance Act 2025, s 25, Sch 5 from 6 April 2025 for income tax and capital gains tax purposes and from 1 April 2025 for corporation tax. Details of the transitional provisions on the abolition are set out in B6.406. The following commentary has been retained for reference in relation to periods before the abolition.
Averaging election
Some furnished holiday letting (FHL) businesses consist of more than one property. In such cases it is possible that one property satisfies the conditions to be a FHL whereas another fails to qualify. Where this is the case and the only reason that the other property fails the test is because it is does not meet the letting condition (ie it is not actually let commercially to the public for 105 days in the relevant period), an election may be made to bring the average up to at least 105 days1.
Where two or more properties are under-used, it may be the case that one
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