Serviced Accommodation
SA

Holiday Let Tax Calculator

Calculate tax for Furnished Holiday Lets (FHL) with full mortgage interest deduction.

AI-Powered
Free to use
Step 1 of 5Income & Days

FHL Income & Letting Days

Enter your rental income and letting days for FHL qualification

Qualifies as FHL

Full mortgage interest deduction available

FHL Qualification Rules

  • Available for letting 210+ days/year (you have 220)
  • Actually let 105+ days/year (you have 120)

About the Holiday Let Tax Calculator

What it does and how it helps you

The Holiday Let Tax Calculator helps UK serviced accommodation investors understand the tax implications of Furnished Holiday Lets (FHL). Calculate your tax liability, understand FHL qualification rules (210-day availability and 105-day letting test), and compare the significant tax savings versus standard BTL.

FHL qualification checker (210/105-day test)
Full mortgage interest deduction calculation
Capital allowances on furniture and equipment
Side-by-side comparison with BTL Section 24 treatment
Income Tax and Class 4 NI calculation
Effective tax rate analysis

How It Works

Understanding the calculation method

1. Enter your gross rental income and letting days 2. Check FHL qualification (210 days available, 105 days let) 3. Add all allowable expenses including full mortgage interest 4. Select your tax bracket and capital allowances 5. See your complete tax breakdown and BTL comparison 6. Understand your annual tax savings from FHL status

When to use this calculator

Use this calculator when evaluating holiday let investments to understand your after-tax returns. Essential for comparing FHL properties with standard BTL investments, planning your SA tax strategy, and ensuring your letting pattern qualifies for FHL status.

Frequently Asked Questions

Common questions about this calculator

Your property must be available for commercial letting for at least 210 days per year to qualify as an FHL. Personal use doesn't count towards this total. The property must also be actually let for at least 105 days.
FHL status allows full mortgage interest deduction against rental income, while BTL landlords only get 20% tax credit under Section 24. For a higher-rate taxpayer with £10,000 mortgage interest, FHL saves £2,000 annually.
Yes, FHL properties qualify for capital allowances on furniture, fixtures, equipment, and white goods. You can typically claim 18% annual writing down allowance or use the Annual Investment Allowance for immediate relief.
Yes, FHL income is treated as business income, not property income. You'll need to register as self-employed and complete a Self Assessment tax return. You'll also pay Class 4 National Insurance.
If you fail the 210/105-day tests, you can elect to average over 2-3 years if one year was exceptional. Otherwise, HMRC will treat that year as normal property income under Section 24 rules.