The furnished holiday let (FHL) rules allow holiday lettings of properties that meet certain conditions to be treated as a trade for tax purposes. In order to qualify as a furnished holiday letting, the following criteria need to be met: In addition, the property must pass the following 3 occupancy conditions. Where there are a number of furnished holiday lettings properties in a business, it is possible to average the days of lettings for the purposes of qualifying for the 105 days threshold. This is called an averaging election. There is also a special period of grace election which allows homeowners to treat a year as a qualifying year for the purposes of the furnished holiday let rules where they genuinely intended to meet the occupancy threshold but were unable to do so subject to a number of qualifying conditions. It was announced as part of the Spring Budget measures that the present favourable tax benefits of letting properties using the FHL rules are to be abolished from April 2025. Source: HM Revenue & Customs | 11-02-2024Checking Furnished Holiday Let property occupancy