QUALIFYING CRITERIA

In view of the tax reliefs available for furnished holiday lettings, the qualifying criteria are accordingly stringent.  Apart from the over riding requirement that the letting must be shown to have been undertaken on a commercial basis and with a view to making a profit within a reasonable timescale, the three main qualifying criteria are:

1.     The accommodation must be available for commercial letting to the public generally as holiday accommodation for not less than 140 days, and

2.     The periods for which the property is let must in the aggregate amount to at least 70 days, and,

3.     The property must not be occupied for more than 31 days by the same person in any period of 7 months.

These tests are applied per 12 month period normally the year of assessment itself.

Furnished holiday letting activities must be reviewed on a regular basis to ensure that they continue to qualify as such.