Capital allowances are available to UK Tax payers, on qualifying Furnished Holiday Lettings located in either the UK or the European Economic Area.
A formal lease agreement is not a stipulation to claiming this relief however, you will nevertheless have to demonstrate that the property is ordinarily let on commercial terms with a view to making a profit.
In order to claim this relief, you will need to ensure that the property also meets additional criteria regarding the availability and occupancy of the property. Broadly speaking, there are three main tests that need to be satisfied, in regard to the days available to let and how often it is let.
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