Furnished Holiday Lets

Qualifying commercial property can include Furnished Holiday Lets (FHLs). Capital Allowances can be claimed when buying or developing existing freehold properties, constructing new properties or developing leasehold properties. Only commercial property which is purchased or leased by an individual or business will qualify. Property held in a pension fund or owned by a charity will not. 

A FHL is a furnished property located in the UK or European Economic Area (EEA) that is available for holiday lets on a commercial basis for at least 210 days per year and is actually let for at least 105 days per year. The total periods of longer term occupation, or letting to the same person for more than 31 continuous days, must not exceed 155 days during the year.  

The Plant & Machinery within FHLs can include fixtures and fitting as well as moveable items like furniture. More integral fixtures can include carpets, air conditioning, swimming pools, sanitary ware, kitchens, heating, emergency lighting, fire equipment, security systems and telecommunications. The list is lengthy and unfortunately there is no definition of what constitutes Plant & Machinery. However, there is a functional test – the asset must be used in the qualifying activity.

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Furnished Holiday Lets