Furnished Holiday Lettings An Update
There is still uncertainty about the future of the generous rules for owners of property used for furnished holiday lettings (FHL).
After the last Government abolished and then reprieved the rules, the current Government is consulting about what to do in order to comply with EU regulations.
The latest proposals suggest that the rules will be tightened up:
Properties must be available for letting for at least 210 days per year (currently 140 days)
Properties must be actually let for 105 days (15 weeks) (currently 70 days)
Losses will only be able to be set against future profits of the same FHL business.
Capital Allowance treatment will be formalised
These rules appear to be very much aimed at the second home owners who also let their properties when they are not using it and so are unlikley to affect many clients of robinson+co whose properties are available 52 weeks per year and achive well over 50% occupancy.
However the restriction on loss relief will hit even commercial providers who rely on finance to fund their purchases, as well as owners who have large expenditure in a year for example updating and renovating their properties.
And these proposals will still leave FHL owners in a non-mans land regarding many other valuable tax reliefs such as Inheritance Relief for Businesses.
Contact Victoria Bishop on 01900 603623 or firstname.lastname@example.org for further information.