Landlords Alliance – Emergency Euro Elections Statement21:09 PM, 21st May 2019
About 2 days ago 65
I’ve a tax question concerning furnished holiday lets and personal occupation
In 2016 I bought a flat and spent £20k on renovating it, with a view to making it a furnished holiday let (FHL) in the short term. I also had in mind that in the long term the flat might make a home for my elderly parents, who are starting to have age-related difficulties in their current home.
The flat is now well-established as an FHL and doing a good trade. I intend to claim that £20k as a capital allowance.
If my parents move into the FHL, I assume HMRC will come after me for some of that £20k and any other deductions made as a FHL.
I don’t expect anyone on here to be able to say exactly how much I will owe HMRC, but I would like to know the approximate rules of thumb that HMRC would use to calculate my liability. I assume for example, that a portion of the £20k would fall due for each year that the flat is owner-occupied – i.e. that HMRC would not ask for £20k immediately.
Any thoughts gratefully received.
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