Furnished Holiday Lettings (FHL)
Issued 27 July 2010
Proposed changes to the special tax rules for furnished holiday lettings. The Government has launched a consultation on a proposal to change the tax rules for furnished holiday lettings so they meet EU legal requirements in a fiscally responsible way.
The consultation is aimed at companies and individuals who operate furnished holiday businesses with properties in the UK or Europe, people and businesses linked to the tourism industry and tax professionals.
The consultation is on proposals to ensure the tax rules for furnished holiday lettings are fully compliant with EU law and are better targeted at businesses that are run commercially 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 detailed policy implementation.
The consultation runs from 27 July to 22 October 2010.
Jacqueline Latter of the Personal Tax Team, HM Treasury will be leading this work and can be contacted using the e-mail address below.
Responses should be sent to holiday-lettings-consultation@hmtreasury.gsi.gov.uk
The Government will publish its response by the end of the year and intends to implement the changes in the 2011 Budget.
View the Government consultation in full
