wasco
27-07-2010, 06:12 PM
The Government's latest FHL consultation paper has just been published (27-July) and can be downloaded at: www.hm-treasury.gov.uk/consult_holiday_lettings.htm
Subject of this consultation:
Proposed changes to the special tax rules for furnished holiday lettings.
Scope of the consultation:
The consultation is on proposals to ensure the tax rules for furnished holiday lettings are fully compliant with EU law and are better targeted at businesses that are run commercially for profit rather than for personal use.
The proposals are to:
• increase the minimum period over which a qualifying property is available to let to the public during a year from 140 to 210 days;
• increase the minimum period over which a qualifying property is actually let to the public during a year from 70 days to 105 days;
• restrict the use of loss relief from furnished holiday lettings so it can only be set against certain income from the same business.
• a loss from a UK qualifying furnished holiday lettings business should only be available to set against future profits from that UK qualifying furnished holiday lettings business.
• a loss from an EEA qualifying furnished holiday lettings business should only be available to set against future profits from that EEA qualifying furnished holiday lettings business.
The consultation seeks views on the impacts of these proposals, and is an opportunity to influence the detailed policy implementation.
Impact assessment:
The consultation stage impact assessment is at Annex B to the document.
Duration:
The consultation runs from 27 July to 22 October 2010.
After the consultation:
The Government will publish its response by the end of the year and intends to implement the changes in the 2011 Budget.
Subject of this consultation:
Proposed changes to the special tax rules for furnished holiday lettings.
Scope of the consultation:
The consultation is on proposals to ensure the tax rules for furnished holiday lettings are fully compliant with EU law and are better targeted at businesses that are run commercially for profit rather than for personal use.
The proposals are to:
• increase the minimum period over which a qualifying property is available to let to the public during a year from 140 to 210 days;
• increase the minimum period over which a qualifying property is actually let to the public during a year from 70 days to 105 days;
• restrict the use of loss relief from furnished holiday lettings so it can only be set against certain income from the same business.
• a loss from a UK qualifying furnished holiday lettings business should only be available to set against future profits from that UK qualifying furnished holiday lettings business.
• a loss from an EEA qualifying furnished holiday lettings business should only be available to set against future profits from that EEA qualifying furnished holiday lettings business.
The consultation seeks views on the impacts of these proposals, and is an opportunity to influence the detailed policy implementation.
Impact assessment:
The consultation stage impact assessment is at Annex B to the document.
Duration:
The consultation runs from 27 July to 22 October 2010.
After the consultation:
The Government will publish its response by the end of the year and intends to implement the changes in the 2011 Budget.