New queries, issue 4632

Holiday season

Claiming refurbishment costs on furnished holiday lets.

My client owns a flat that has previously been let privately. After a spate of poor tenants in 2016-17 she decided to change its use to a furnished holiday let and operate under Airbnb. It took several months of redecoration and refurbishment to bring the property up to the required standard and letting did not start until 2017-18.

My query relates to how these costs should be claimed because due to the length of time of the refurbishment the flat did not qualify as a furnished holiday let during 2016-17 when they were incurred. During the current tax year the flat has already exceeded the furnished holiday let requirement. Should these costs be held back until the end of the current financial year?

My client has other residential property lets. However because the intention...