Stewball

Sorry to work across two conversations, but my situation sounds similar (perhaps identical) to Bill's. However, to expand, our annexe is subject to its own council bill as it is self-contained and has its own kitchen and bathroom etc (despite being on the same utilities systems) and I therefore understood it could not be considered eligible for the rent-a-room scheme. Are we open to decide whether to go with FHL, rent-a-room, or another option? Thanks

Thank you for your response HMRC, and for raising the issue of CGT which I'd recently engaged with too. I wonder what benefits there might be in not electing to go with FHL?

We have a granny annexe flat attached to our main residence that we refurbished two years ago and have let via Airbnb for the past 18 months (79 nights in 23/24 and 125 already in 24/25). We've received less than £4k each in 23/24 and £7k in 24/25 and only now approaching making a 'profit' after our refurbishment costs. I've read that we could be FHL eligible - are we obliged to be so? I\ 've also read that capital costs incurred before renting the property can be set against future income, but in the thread a response from HMRC suggesting otherwise (if I've read either correctly). Finally, does our Airbnb being a granny annexe on the same deeds as our main home, albeit self-contained and with its own council tax, have any additional implications?