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HMRC internal manual

Property Income Manual

Furnished holiday lettings: treatment of FHL losses for 2010-11 onwards

Treatment of FHL losses for 2010-11 onwards

ITA07/83-88 and ITA07/96-101

If a customer’s FHL business makes a loss it can set it against FHL profits of a later year. A loss in a UK FHL business can only be carried forward against a profit of the same UK FHL business. Likewise, a loss in an EEA FHL business can only be carried forward against the profits of the same EEA FHL business.

A customer cannot set the losses of one FHL business against the profits of the other if they have both a UK and an EEA FHL business. In addition, a customer cannot set losses of a FHL business against the profits of a non-FHL property business.