Furnished holiday let (FHL)

A furnished holiday let (FHL) is a property let on a short-term, holiday basis, which meets specific tax conditions, for example minimum days actually let, maximum length of individual stays, and being available to the public as holiday accommodation. For income tax and capital gains tax, a qualifying FHL is treated more like a trading business than a standard buy-to-let, with different reliefs and rules.

From a possession perspective, an FHL is usually not an assured or assured shorthold tenancy, because the occupier does not use it as their only or main home. Instead, the arrangement is typically a holiday licence or short holiday tenancy, with clear start and end dates and no statutory security of tenure. When the booking period ends, the guest is expected to leave and you regain possession without using the Renters’ Rights Act possession grounds or deposit rules that apply to normal residential lets.

However, if an FHL is used as someone’s main residence, or bookings become effectively long-term occupation, a court or tribunal could decide that an assured tenancy has arisen, bringing the full weight of housing law and Renters’ Rights Act protections into play. Landlords should keep clear written terms, avoid informal “rolling” occupation, and take advice before allowing extended stays.

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