Owning and letting out a holiday home, otherwise known as a furnished holiday let (FHL), has always been a popular way of investing and earning income – but there are important tax implications of furnished holiday lets that you need to be aware of.
Not only do FHLs enjoy many tax advantages over normal residential let properties, owners have an asset which they can use for holidays while it largely pays for itself.
While the UK cracks on with vaccinating the population against COVID-19, other nations are lagging behind. This is having a domino effect on people’s plans for foreign holidays in 2021 and many are planning to enjoy domestic holidays this summer.
Demand for self-catering accommodation from a public weary of lockdown restrictions is high and the asking prices reflect this.
If you own additional property in the UK, there has never been a better time to consider whether a FHL is the right investment.
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.