It would appear that the threatened withdrawal of the tax benefits for owners of Furnished Holiday Lettings has been cancelled!
For the tax year 2010-11 it is back to business as usual – letting activity is treated as a trade, CGT rollover and Entrepreneurs’ Relief is available, rental losses can be set off against other income and so on.
However, later this Summer the Government will be publishing a public consultation with a view to changing the tax treatment of Furnished Holiday Let property from 6 April 2011. Changes may include:
- An increase in the number of days qualifying properties have to be made available for letting and actually let.
- A change in the way loss relief is given.
