Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will review the requirement of furnished holiday lets to let at a commercial rate for 105 days per annum should they wish to remain a small business, to allow those businesses to offer free accommodation to Ukrainian refugees.

Furnished Holiday Lets (FHLs) receive special tax treatment including the ability to claim trading Capital Gains Tax reliefs and capital allowances for items such as furniture. In addition, FHLs are not subject to any finance cost relief restriction and profits count as earnings for pension purposes.

Landlords can provide their residential properties to refugees for free. When a property does not qualify as a FHL, or stops being a qualifying FHL, the landlord becomes subject to the normal tax rules for residential property rental income.

Whilst there are no plans to change this to reflect the situation in Ukraine, the UK Government is clear that we must ensure the humanitarian needs of displaced people are met, both within and beyond Ukraine’s borders, and we urge the relevant authorities to consider and plan for such possible outcomes. The UK is now the largest bilateral humanitarian donor to Ukraine and has pledged around £400 million to help Ukraine.