Dfr2024 Waterhouse
-
VAT Threshold FHL and Shorthold Tenancy
We have a FHL business which we were selling (along with our main residence) but the sale fell through last minute. We are now considering renting out our main residence (we are living with family now) under a short hold tenancy agreement and continue to run the holiday let business but are concerned about the tax implications as we don’t want any short hold tenancy income from letting out our main residence putting us over the VAT threshold for our Furnished Holiday Let business as this will be a short term solution until we decide to remarket the property. So my question is, for tax purposes, would our FHL business be classed as a separate tax entity to the income we receive from any short hold income from letting out our main residence short term? (Ie there would a vat threshold applicable for the FHL entity and another VAT threshold applicable to the short hold tenancy income) Thanks in advance