[quote Bourdic]Here’s some facts about all the tax advantages normally available and add to that all of the COVID help from the Treasury. I’ll save my tears for others
www.sykescottages.co.uk/blog/furnished-holiday-let-tax-guide/[/quote]
Bourdic, it is quite right that Furnished Holiday Lets have tax advantages as compared with 'ordinary' rental properties.
However: the pension advantages are mostly irrelevant as very few owners of FHLs have enough spare money to contribute to a pension; on the whole, our FHLs are a bricks and mortar pension fund. Secondly, they do also have massively higher outgoings, and are much harder work than letting properties on an AST, which I have done in the past. I run my own holiday lets and don't use an agency or a cleaner. If you do it all yourself, it is a full-time job for most of the year bar January.
COVID help from the Treasury for owners of FHLs has consisted of a one-off tax-free £10,000 payment. I am massively grateful for this, because I could not have survived without it. However, my income from March - September would normally be significantly higher than this, and I would also have the knowledge that I would be pretty fully booked until well into 2021. As it is, I haven't had a single booking since the lockdown started, so am facing months and months without any income at all once the £10,000 has run out.
My calendar was completely full until October before lockdown. Every single guest has cancelled. I have given every single one a full refund (bar the one family who asked to reschedule their trip for a year later). I could have kept their deposits, according to the contract I have with them, but goodwill is worth a huge amount in terms of possible future bookings.
Owners of FHLs don't normally qualify for benefits as their assets are generally above the threshold. Again, we are fortunate in this regard. However, it is worrying to have properties just sitting there while we are still paying for the utilities, broadband, service charges (in the case of my apartments), mortgages, etc, etc, with very little money coming in.
As a single parent with two children who are currently not at school, I find this very worrying.
I say this not to dismiss your own concerns, but just by way of context.