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Period of grace

 
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GhCottage



Joined: 18 Jul 2019
Posts: 2

PostPosted: Wed May 20, 2020 8:09 am    Post subject: Period of grace Reply with quote

Hi everyone, I hope I'm posting in the right place. I'm looking for clarity on the period of grace and hoping to find some from your collective wealth of experience.

We opened our cottage last July and have rented the place out but it's not had 105 days yet. We've let out to family but I understand those don't count if you give a discount. Obviously coronavirus has scuppered our plan to catch up over the Easter and May holidays.

From the research I've done it seems that the period of grace requires you to have one full year first, which seems unfair. Surely you struggle most with bookings your first year. There's a section on HMRCs website that says about being closed for part of the year but is that after the 105 days? Plus being closed so long I'm not sure if we've been open the full 210 days, I'll have to check!

I've asked a friend who's an accountant but unfortunately although she can check our books she doesn't know what to do about coronavirus!

Thanks
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Perran



Joined: 31 May 2015
Posts: 27
Location: Cornwall

PostPosted: Thu Sep 03, 2020 4:32 pm    Post subject: Period of grace question Reply with quote

Yes, you can only make a period of grace election if you have already met the criteria.

We could not meet the requirements in our first year, as I am sure a lot of holiday lets can't, because you are just beginning and you have not had many guests. There won't be any repeat business, in our first year we only had a few weeks booked.

I treated the income as an ordinary rental property income, until it met the criteria.
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GhCottage



Joined: 18 Jul 2019
Posts: 2

PostPosted: Sun Sep 06, 2020 6:03 am    Post subject: Reply with quote

Thank you. Fortunately once lockdown lifted we were able to get the last few bookings we needed 🙂
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ianh100



Joined: 10 Jan 2013
Posts: 583
Location: Sherborne Dorset

PostPosted: Sun Sep 13, 2020 2:05 pm    Post subject: Reply with quote

Don't forget the measure is for tax years not calendar years so you have until the end of march to make your number for this year.
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