Your property will no longer be a FHL if the:
property is:
sold
used for private occupation
letting condition is not met even with the averaging and period of grace elections
If your property does not qualify as a FHL or stops being a qualifying FHL, the special tax treatment will no longer apply. You will need to work out any balancing allowance or balancing charge for capital allowances, read Helpsheet 252 Capital allowances and balancing charges and any Capital Gains Tax reliefs will be affected, read:
Helpsheet 275 Entrepreneurs’ relief
Helpsheet 290 Business asset roll over relief
Helpsheet 295 Relief for gifts and similar transactions
Helpsheet 296 Debts and Capital Gains Tax