Pre-Budget Report – Furnished Holiday Lettings
Further details have been announced on the Furnished Holiday Lettings rules which are to be repealed from April 2010. The changes have come about due to compliance issues with EEA legislation.
The changes will take effect from 6 April 2010 for income tax and capital gains tax and from 1 April 2010 for corporation tax. This will affect individuals, partnerships, trustees and companies who have income or capital gains from the commercial letting of furnished holiday accommodation.
From these dates the tax treatment of Furnished Holiday Lettings will be the same as for other property businesses.
These measures do not affect hotels and similar businesses.