ACCA · Question 03 · Income Tax Liabilities
Section A: Objective Test
Elena owns a cottage in Cornwall which she lets out as a Furnished Holiday Let (FHL). During the tax year 2023/24, the property was available for commercial letting to the public for 220 days. It was actually let to the public for 115 days. The longest single period of occupation by one tenant was 45 days.
Does the property qualify as an FHL for 2023/24, and what is the primary tax advantage regarding capital allowances?
Answer options:
No, it does not qualify because it was not let for at least 210 days.
Yes, it qualifies; the primary advantage is that capital allowances can be claimed on the building structure.
Yes, it qualifies; capital allowances can be claimed on furniture and equipment.
No, it does not qualify because a single let exceeded 31 days.
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