The Occupancy Conditions
1. The Pattern of Occupation Condition
If the total of all lettings that exceed 31 continuous days is more than 155 days during the year, this condition is not met so your property will not be an FHL for that year.
2. The Availability Condition
Your property must be available for letting as furnished holiday accommodation for at least 210 days in the year (140 days for the tax year 2011 to 2012 and earlier). Do not count any days when you are staying in the property. HMRC do not consider the property to be available for letting while you are staying there.
3. The Letting Condition
You must let the property commercially as furnished holiday accommodation to the public for at least 105 days in the year (70 days for the tax year 2011 to 2012 and earlier).
Accommodation that qualifies as a Furnished Holiday Let
To qualify as an FHL your property must be:
In the UK or in the European Economic Area (EEA)
the EEA includes Iceland, Liechtenstein and Norway.
Furnished
there must be sufficient furniture provided for normal occupation and your visitors must be entitled to use the furniture
How to use the occupancy conditions:
For a Continuing Let
Apply the tests to the tax year – that is from 6 April one year to the 5 April the next.
For a New Let
Apply the tests to the first 12 months from when the letting began.
When your Letting Stops
Apply the tests to the 12 months up to when the letting finished