Claiming back money from New Appartment Holiday Let

If you are planning to buy a rental home, or you're thinking about what to do with one you have just acquired, this is the place for any questions about starting out in the rentals business.
Banffy
Posts: 13
Joined: Sun Mar 14, 2021 3:01 pm

Claiming back money from New Appartment Holiday Let

Post by Banffy »

Hi, Just looking to start up. I have some questions if you can help please.
1. Can you claim back 100% of the costs for furnishing a FHL?

2. Is it best to use an accountant?

3. Can I claim money back for cleaners, broadband, Sky, House Insurance any others? Would that claim for utilities be for the amount of weeks it was actually rented only?

4. What percentage can be claimed back? Is it the whole amount or a percentage, can you give an example please.
AndrewH
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Joined: Thu Sep 12, 2013 1:17 pm
Location: Kefalonia, Greece
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Claiming back money from New Apartment Holiday Let

Post by AndrewH »

I don't know, but I am guessing that your rental apartment is in the UK and, if it is, I think you would be wise to employ an accountant to advise and guide you. You will be liable for tax on the proceed of your rental business, but for tax purposes you will be able to set off against that gross income (1) something for capital expenditure on the initial furnishing of your property and (2) your day to day expenses in running your rental business, e.g. the electricity bill, water bill, cost of cleaning materials, advertising, etc. etc.
Joanna
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Joined: Thu Aug 23, 2007 3:12 pm
Location: Chester, North West England & Sidmouth, East Devon
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Post by Joanna »

Also, bear in mind that it only counts as a FHL if you rent for above a certain number of nights per year. I can't remember off hand what the threshold is but an accountant with FHL experience would be able to tell you. You're allowed a grace period for the first year but after that you need to make sure it will meet the threshold - it all depends where your place is - for example, some very seasonal locations or those on holiday parks that close for the winter, might struggle to qualify.
Jo

Joint owner of Baker's Cottage in Chester & Chandler's Cottage in Sidmouth
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