12.5.1 FHL losses generally

For a note on the background to FHL losses and the qualifying conditions, see 4.4.1.

As for other types of property businesses, profits and losses from UK FHL or EEA FHL businesses must be calculated separately from each other and must also be kept separate from other non-FHL profits and losses.

Whilst properties that qualify as furnished holiday lettings are treated as a trade, the same loss reliefs are not available when an FHL makes a loss.

FHL losses are not restricted by the corporate loss restriction (see Chapter 10) so can be carried forward and offset without restriction.

Law: CTA 2009, s. 269, 269A

Guidance: HMRC helpsheet HS253

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