Furnished Holiday Lettings - Do you know the latest rules?
Furnished Holiday Lettings (FHLs) have come under the spotlight in recent years, with successive governments vowing to reform the rules on the tax treatment of such properties. Please find here our guide to the current and future rules on FHLs.
Different tax rules apply to income from letting property, which is generally taxed under the property income rules. For many years, the FHL rules allowed holiday lettings of UK properties that met certain conditions to be treated as a trade for some specific tax purposes.
At the 2009 Budget, in response to proceedings instituted by the European Commission, the previous Government announced that the FHL rules would be extended to cover holiday lettings of properties situated elsewhere in the European Economic Area (EE), from April 2009. However the FHL rules were to be withdrawn completely from April 2010. The Coalition Government later announced that the FHL rules would not be withdrawn, but would continue, with future revisions of the conditions. Find out more here.
If you have a question about FHLs, please contact Moira McMillan or Arlene Reid on 0131 558 5800 or email mail@chiene.co.uk