Business News

U-Turn on Furnished Holiday Letting

Individuals who provide furnished holiday lettings have, for many years, enjoyed a  significantly more favourable tax regime than other landlords.

The 2009 Budget announced that this was all set to change, and that from 6 April 2010 the tax rules relating to furnished holiday letting were to be brought into line with the less beneficial rules governing all other property letting activities.

However, in an apparent U-turn, on 7 April 2010, it was announced that the Government has removed these proposals from the draft 2010 Finance Bill.

It remains to be seen if this is just a temporary or more permanent change, but for now at least the possibility of income tax loss relief claims and a favourable capital gains tax and inheritance tax status looks set to remain in place.