Qualifying Furnished Holiday letting business attract valuable tax advantages when compared to standard Buy-to-let businesses.
Some of these are noted below:
- QFHL business can claim all the finance costs as tax allowable
- Capital Allowances and Annual Investment Allowances are claimable on the cost of usual furnishings and also in the deemed cost of integral features within the property cost itself - typically 20-25% of the cost.
- On a sale or transfer, Entrepreneurs Relief, Rollover relief and Holdover relief are available to reduce or eliminate an immediate charge to Capital Gains Tax.
- The profit is deemed to be earned income and therefore can be used to make qualifying pension contributions. Also, the profit from jointly held QFHL property can be split in any way the owners wish.