The Magic of Furnished Holiday Lets

Straddling the line between buy-to-let and business venture, furnished holiday lets (FHLs) provide investors with a new, exciting way to earn income and make a profit. They’re also a great way to diversify a property portfolio.

Tourism in the UK is booming, and as more Brits choose to staycation over going abroad, FHLs have become hot property. Public demand is higher than ever, and according to research by Travelodge, an estimated 69% of Britons chose to take their annual summer holiday in the UK last year, up from 57% in 2018. There is clearly a need for more holiday homes in the UK, but this high demand isn’t the only positive for investors.

Taking advantage of special tax rates, FHLs can be an invaluable asset. Doing exactly what it says on the tin, FHLs are ready-to-go investment properties that are let out to holidaymakers for commercial use. As long as it meets the correct criteria, this type of investment benefits from of a number of tax advantages, providing investors with a generous financial boost AND allowing them to have a holiday home for the rest of the year. If run correctly, FHLs are a win-win investment.

How do I qualify?

For your property to qualify as an FHL, it must:

When your property meets this criterion, you become eligible for a number of tax advantages that don’t apply to typical buy-to-let. Because FHLs have the commercial business aspect, the government allows you certain privileges that can ultimately boost your revenue by a substantial amount in the long run.

Tax advantages include:

Want to find out more? Get in touch with one of our experts today!

Disclaimer

Assetz Property and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transactions.

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