The 3 Occupancy Conditions

Accommodation can only qualify as an FHL if it passes all 3 occupancy conditions which we have highlighted below.

CARS team meeting

The Occupancy Conditions

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    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. The 31 day rule can be extended if something unforeseen happens, for example, if as an occupant being unable to leave on time due to an accident, or if a holiday has to be extended due to the occupant not being able to fly as scheduled.

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    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.

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    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). It does not count as a commercial let if the property is occupied by family or friends at no charge.

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)

which includes Iceland, Liechtenstein and Noway.


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

See how much of a tax relief you could achieve

Capital Allowance Review Service

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