The guidance states that a claim can be made in respect of trading profits lost due to the coronavirus.
Property letting businesses are not regarded as a trade, even if they are operated as a business, and in the absence of any exemptions to include rental businesses, landlords will not qualify for the SEISS grant even if more than half of their taxable income is from rental income.
Similarly, the letting of furnished holiday letting (FHL) accommodation is not strictly a trade, whilst it is treated as a trade for certain areas such as pensions and capital gains tax. On this basis, as with other residential and commercial landlords, the guidance doesn’t appear to make an exception for FHL businesses and it is unlikely HMRC will consider income from an FHL as qualifying for the SEISS grant.
Landlords who have been affected by Covid-19 will need to explore other options to obtain support such as mortgage payment holidays and a reduction in their council tax or a reduction to their business rates if they have FHLs.
As new information and details are provided and should the support for landlord’s change, we will provide a further update.
The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.
The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.
Share this article