HMRC have updated the 'Property Income Manual PIM4110' to provide further COVID-19 related guidance on meeting the Furnished Holiday Letting (FHL) conditions in 2020-21.

It was previously announced that when considering whether a Furnished Holiday Letting (FHL) Period of grace election could be made for the 2020-21 tax year, unforeseen circumstances would include where the 105-day letting condition was not met due to COVID-19 measures such as enforced closure due to lockdown or travel ban.

  • A period of grace election only assists taxpayers in meeting the 105-day letting requirement.
  • This announcement left some questions over meeting the 210-day availability condition in 2020-21 as extended periods of national lockdown prevented domestic holidays.

HMRC has updated its Property Income Manual, at PIM4110, to clarify that, “For the tax year 2020-21 the availability condition is satisfied if the person has made the property available for letting as furnished holiday accommodation for at least 210 days in the year even if COVID-19 restrictions prevented the property from being used.”

As has always been the case, any days where the taxpayer occupies the property themselves may not be included when considering if the 210-day test is met. This exclusion has also been extended to include 'other circumstances such as a period of renovation'.

Useful guides on this topic

Furnished Holiday Letting
What is Furnished Holiday Letting? How do you qualify for Furnished Holiday Letting? What are the rules for Furnished Holiday Letting?

Property profits & losses: Toolkit (2021-22)
Our Property profits & losses toolkit takes HMRC's version and adds a great deal more information about what you can claim as an individual.

External link

Property Income Manual PIM4110


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