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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15946
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Regarding FHL, if property is let/available to let as a FHL

Resolved Question:

Regarding FHL, if property is let/available to let as a FHL for 3 months of tax year starting August, but property is sold endJan/early Feb following year
Q1. Does property qualify for FHL tax allowance s?
Q2 if property was main home for 2.5 years, minus 3 month holiday let period, is CGT payable on difference between sale & purchase price?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Q1 You have to monitor the situation on an ongoing basis to see if the property has met the conditions in a tax year or a 12 month period when letting commences or ends. Refer to the "Occupancy Conditions" in HS253 here: https://www.gov.uk/government/publications/furnished-holiday-lettings-hs253-self-assessment-helpsheet/hs253-furnished-holiday-lettings-2015 Q2 The gain is always worked out using the original purchase price and the disposal proceeds. Main residence relief is given for the period of occupation and for the last 18 months of ownership so long as the property has been the main home at some point. See HS283 here: https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.
So if it was my main home may 2013/- Jan/Feb 2016, apart from 3 months FHL do I get full main residence relief?
Expert:  TonyTax replied 1 year ago.
If you bought it in May 2013, moved into it straight away and sold it within 18 months of moving out, then the whole gain will be tax free.
Customer: replied 1 year ago.
Thanks. Q1. There is not 12 month period from Aug 2015 to sale date of Jan/Feb 2016. Fhl was start Aug 2015-end oct 2015. Can the allowances be calculated as a proprtion of 12 month period?
Expert:  TonyTax replied 1 year ago.
Based on that you won't get FHL relief.
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