AMLF

Ok, thank you for clarifying .

Feedback  .

Hi - I don't really need to you to comment on the specific scenarios, all I need is a clear definition of what constitutes 2 years of ownership of an FHL, because there are several possible start points that one could justifiably measure from. Nowhere in the guidance documents does this seem to be clearly defined. I have already spent hours in the call queue for the CGT help line, so that's why I'm asking on the forum. If no specific definition exists, does that mean that we can choose which start point to use, as long as it is justifiable? Thanks

Thanks for the reply. We are now planning to split the gains when we sell the property, and therefore to split the CGT on a 50/50 basis. So that simplifies the CGT position. However, your reply above mentions that the monthly income from the Furnished Holiday Let should also have been split 50/50? This goes against the HMRC document TSEM9820 (https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem9820) which states "The 50/50 rule does not apply to income arising from a UK property business which consists of, or so far as it includes, the commercial letting of furnished holiday accommodation." The property qualifies officially as an FHL, so it is surely covered by that statement?

Hi - I have already read all of the guidance you linked to, but those documents, in conjunction with your answer, still don't fully answer my question. Let me ask the question another way. Imagine first that I was disposing of another type of business, e.g. a jewellery shop. Attaching dates to this hypothetical business: If... - 1 Jan 2022 - started setting up the shop - 1 Feb 2022 - opened the shop - 1 Jan 2024 - sold the shop I assume in those circumstances, the disposal of the shop would be meet the 2-year criteria for BADR. Now looking at that with a holiday let example: - 1 Jan 2022 - started setting up the holiday let business - 1 Feb 2022 - opened the letting for bookings - 1 Mar 2022 - first actual booking - 1 Jan 2023 - reached the FHL criteria for the first 12 months, so now qualifying as an FHL - 1 Jan 2024 - sold the FHL So my question is - in the above example, would the disposal of the business also qualify for BADR in terms of the 2-year rule? If equivalent to the jewellery shop example, the answer would be yes. But your previous answer seems to suggest that the two year rule applies from the date of FHL qualification? Is that the case? In which case, in that example, what date would the business need to be sold after in order to meet the 2 year criterion for BADR?

When selling a property which has been an FHL (before the changes in Apr 2025), Business Asset Disposal Relief applies if we have owned the business for more than two years. But what is the exact event which triggers the start of the two year ownership period? Due to sell a property which we have owned for more than two years, but it wasn't initially a holiday let. I first starting setting up as an FHL two years ago, but it didn't meet all three of the FHL criteria until more recently. Can I claim BADT on the basis that I started business activities relating to the FHL more than two years ago? Or is there a specific event such as meeting FHL criteria which triggers the start of the two year process?

My husband and I jointly own a property, with both of our names on the deeds. But I am the full beneficial owner of the property - I run and manage it as a holiday let, and I receive the full income from this business, and pay the full income tax from it. We have not submitted a Form 17 to declare my beneficial ownership of the property, because TSEM 9820 says this isn't necessary for FHLs. However - what is the situation when it comes to the sale of the property? I will receive the gains and therefore plan to report and pay 100% of the CGT due myself (using only my individual CGT allowance). Is that correct, or would it be a 50:50 split without a Form 17? I assume that the TSEM 9820 guidance applies here also, i.e. no Form 17 is needed, but I wanted to check in advance of the sale to make sure that we have the correct paperwork in place. Thanks