Budget 2009 – Furnished Holiday Lettings
Two radical changes have been announced that will affect the taxation of income and gains related to the letting of furnished holiday lettings:
- Properties owned by UK taxpayers situated in the European Economic Area (EEA) can now qualify as Furnished Holiday Lettings. Previously only properties situated in the UK qualified;and
- From 6 April 2010 the Furnished Holiday Lettings rules are to be repealed!
Both of the changes have come about due to compliance issues with EEA legislation.
All taxpayers who own and let properties within the EEA, including the UK, may benefit from a strategic review of their present property tax planning due to these changes. It is vital that the narrow window of opportunity occasioned by this change be carefully explored.