News
Furnished holiday lettings - the proposals
Posted on: 27 July 2010
The government has published a consultation document containing its proposed amendments to the furnished holiday lettings rules.
The current rules will remain in force for 2010/11, and the following proposed revisions will take effect from April 2011:
- The minimum period for which a qualifying property is available to let to the public will be increased from 140 to 210 days per year.
- The minimum period for which a qualifying property is actually let to the public will be increased from 70 to 105 days per year.
- Losses from a UK furnished holiday lettings will only be able to be set against future profits from that UK furnished holiday lettings business.
- Losses from an EEA furnished holiday lettings will only be able to be set against future profits from that EEA furnished holiday lettings business.
- The capital allowances rules will be changed to cater for the situation where a property qualifies in one year but not the next. An option for change is to keep such assets in a separate pool, which would be treated as a notional pool until the property once again qualifies.
The capital gains tax reliefs enjoyed by qualifying properties, including entrepreneurs' relief, rollover relief and gift relief will remain available, and it is estimated that about 80 per cent of the properties that currently qualify will continue to do so.
Responses to the proposals should be submitted by 22 October 2010.
