Good News In June Budget for Furnished Holiday Let Owners. Today the Chancellor of the Exchequer has set out his Budget. The measures announced will reduce the deficit, introduce a fairer tax system, and encourage an enterprise and growth agenda in the UK.
The Budget 2009 proposal to repeal the special tax rules for furnished holiday lettings will not be implemented. Instead, the Government will consult over the summer on an alternative proposal to ensure the tax treatment of holiday lettings meets EU legal requirements in a fiscally responsible way, which does not penalise UK businesses, by changing the eligibility thresholds and restricting the use of loss relief.
Nick Braund of taxcafe.co.uk commented, “The Chancellor’s decision to reinstate the previous rules for furnished holiday lettings is a tremendous boost for all those hard working owners of holiday properties. Furnished holiday lets will once again be one of the most tax efficient forms of property investment, with preferential income tax and capital gains tax treatment. All of the tax reliefs enjoyed by FHL owners are fully deserved when once considers the important contribution this sector makes to the economy”.
You may be interested in reading HM Revenue & Customs – Furnished Holiday Lettings – Q & A here