Shaz explains the rules and restrictions of turning property purchases into serviced accommodation, focusing on the two models available - Furnished Holiday Lets (FHL) and Serviced Accommodation (SA).As he continues to tutor his live audience, Shaz explores the benefit of offering services to guests, what schemes are available to help property owners pay less tax, and how multiple properties can help to alleviate some of the restrictions of an FHL.KEY TAKEAWAYS
A Furnished Holiday Let (FHL) must be made available for commercial letting for at least 210 days a year and rented out for a minimum of 105 days at their full rate
If lettings over 31 days exceed 155 days in a year, your property will not qualify as an FHL
An FHL is not considered a trading business but can benefit from many of the same reliefs
FHL restrictions may no longer apply if you offer additional services such as breakfast, tours, and concierge
Reduce tax using the Tour Operator Margin Scheme (TOMS)
Furnished Holiday Let mortgages are available for properties that follow the FHL restrictions
BEST MOMENTS“SA is supposed to be short-term lets - one night, two nights, four nights, not a month or longer.”“Whether you’re a Furnished Holiday Let, or whether you’re a proper SA, if you go over £85,000, you’ve got to pay VAT on the income.”VALUABLE RESOURCESshaz@aaa-accountants.co.ukABOUT THE HOSTShaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultations he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.You can find Shaz on:
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