Furnished holiday lettings

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. Why did the government originally decide to abolish the favourable tax treatment for UK furnished holiday lettings?

  2. From which dates are the changes in the FHL regime effective for individuals?

  3. Miss Austra is a UK resident and has a property in Austria (which is in the European Economic Area). During the year ended 5 April 2012, she let out the property on the following basis. The flat is available for letting to holidaymakers from the beginning of March to the end of December and is actually let on one and two week holiday lets for a total of 115 days. The property is vacant the rest of the time. Will the property qualify as a furnished holiday letting?

  4. Mr Bump is a UK resident, has a property in South Wales on short term lets. During the year ended 5 April 2012, he let out the property on the following basis. The flat is available for letting to holidaymakers from the beginning of March to the end of December and is actually let on one and two week holiday lets for a total of 85 days. The holiday lettings include a holiday taken by some friends from 1 July to 14 August. Will the property qualify as a furnished holiday letting?

  5. Mr Wilson owns a property in Margate which qualifies as a furnished holiday letting. During the year ended 5 April 2011, he makes a loss for income tax purposes of £10,000. Which of the following type of loss relief is NOT available to Mr Wilson?

  6. Chunks Ltd owns a property in France which qualifies as a furnished holiday letting. During the accounting year ended 31 August 2010, the letting makes a loss for corporation tax purposes of £10,000. Which of the following type of loss relief is NOT available to Chunks Ltd?

  7. Mr Jenkins realises a loss on the letting of his furnished holiday let property during the year ended 5 April 2012. What types of loss relief are available to Mr Jenkins in respect of those losses?

  8. Mr Tumble is a VAT registered plumber who turns over £200,000 in the year ended 5 April 2012. He also owns a furnished holiday let in the Lake District and receives rental income therefrom of £10,000. What would be the VAT position on the income received from his furnished holiday letting?

  9. Which of the following capital gains tax reliefs NOT be available on a qualifying FHL property?

  10. Transitional relief is available on the change in respect of the change of qualification criteria from 2010/11 to 2011/12. In which of the following circumstances would the transitional relief be available for 2011/12 for a property which had previously qualified as an FHL in 2010/11?