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Holiday Lets

To comply with the current rules for furnished holiday lettings your property must be:
  • in the UK or European Economic Area
  • furnished
  • available for commercial letting to the public, as holiday accommodation, for at least 140 days a year
  • commercially let as holiday accommodation for at least 70 days a year (the rent must be charged at market rate - not at cheap rates to friends and family)
  • a short term letting of no more than 31 days - see more below

Lets to the same person

You can let to the same person more than once as long as each let is less than 31 days. All of these lets together can total more than 31 days and still count as furnished holiday lettings.

Lets for periods longer than 31 days

You can let the property out for periods longer than 31 days in one stretch but none of the days will count towards your qualification. This is known as 'longer term occupation'. However if the total of all or any 'longer term occupation' lets is more than 155 days in the tax year, your property will no longer qualify as a furnished holiday letting.


If your property doesn’t qualify

If your property doesn't qualify as a furnished holiday letting, you will be taxed under the residential property lettings rules.

Changes to the furnished holiday letting rules

The 2009 Budget announced an intention to withdraw these rules from 6 April 2010 for Income Tax and Capital Gains Tax. For Corporation Tax the date was 1 April 2010.
The June 2010 Emergency Budget announced that the change won't take place now and the rules will continue to apply for the 2010-11 tax year.
The government has issued a public consultation document which sets out the proposals to amend the rules from April 2011.


The content and advice is for information only. Last updated 09.11.2010.

For up to date information and advice, based on your specific circumstances, please contact us.

We cannot be held responsible for actions taken with reference to the content contained on this website.


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