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Moving my parents into my FHL what would I owe to HMRC?

 
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stJim



Joined: 18 Nov 2017
Posts: 1
Location: Eastbourne

PostPosted: Sun Nov 19, 2017 10:48 am    Post subject: Moving my parents into my FHL what would I owe to HMRC? Reply with quote

Ive a tax question concerning furnished holiday lets and personal occupation

In 2016 I bought a flat and spent 20k on renovating it, with a view to making it a furnished holiday let (FHL) in the short term. I also had in mind that in the long term the flat might make a home for my elderly parents, who are starting to have age-related difficulties in their current home.

The flat is now well-established as an FHL and doing a good trade. I intend to claim that 20k as a capital allowance.

If my parents move into the FHL, I assume HMRC will come after me for some of that 20k and any other deductions made as a FHL.

I dont expect anyone on here to be able to say exactly how much I will owe HMRC, but I would like to know the approximate rules of thumb that HMRC would use to calculate my liability. I assume for example, that a portion of the 20k would fall due for each year that the flat is owner-occupied i.e. that HMRC would not ask for 20k immediately.

Any thoughts gratefully received.

St Jims
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Zingara



Joined: 09 Apr 2013
Posts: 584
Location: Antibes, PACA

PostPosted: Sun Nov 19, 2017 11:59 am    Post subject: Reply with quote

As has been mentioned on here, on another post, your best bet may be to ask HMRC for advice. You're exploring possibilities, and there may well be other tax considerations (for example,will your parents be selling their home, assuming they own one?)

It may be advantageous to convert from FHL, to a standard rental, and then have your parents pay rent. Under those circumstances, you may still be 'allowed' your 20K initial investments.

I know the rules have changed this year, which in part, is why I'm thankful to be reducing my exposure to the rental market!
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