Last Updated on August 2, 2010 by admin
HM Treasury in conjuction with HM Revenue & Customs have published a consultation document on proposed changes to the special tax rules for furnished holiday lettings.
The consultaion is on proposals to ensure the tax rules for furnished holiday lettings are fully compliant with EU law and are better targeted at holiday letting businesses that are run commercial for profit rather than for personal use.
The proposals are to:
- increase the minimum period over which a qualifying property is available to let to the public during a year from 140 to 210 days;
- increase the minimum period over which a qualifying property is actually let to the public during a year from 70 days to 105 days;
- restrict the use of loss relief from furnished holiday lettings so it can only be set against certain income from the same business;
The consultation seeks views on the impacts of these proposals, and is an opportunity to influence the details policy implemention.
The Furnished Holiday Lettings Consultation document is available to download here