[wasco]

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.

[BVC]

Hello, I agree with most of this legislation but I am a bit concerned about the fifteen weeks let clause. My cottages are available for the whole year. I do usually manage to let for 15 weeks but no matter how much advertising [I do not use an agency] it is not always certain that I will get a full seasons bookings. Here in the north of England the season is quite short, a week at Easter, a couple of weeks in May, the summer holidays and the odd half term. It would seem a bit hard to penalise cottage owners if despite their best efforts they could not attain 15 weeks. My cottages are only used for holiday letting, they are not second homes and are not used by my family. I expect in the south and west of the country the season is probably longer. What do others think.
Incidentally has anyone tried the email link on the PDF document
holiday-lettings-consultation@hmtreasury.gsi.gov.uk
I posted my comments but the mail wasa returned to me as undeliverable. Does anyone have another address? BVC

[wasco]

Please email your concerns to Martin Sach, Chief Executive of EASCO; the English Association of Self Catering Operators - email address: ce@englishselfcatering.co.uk. If you're not already a member of EASCO, you should give serious consideration to joining - see www.englishselfcatering.co.uk for details.

Question 5 in the consultation asks "Is the proposal likely to impact differently in different regions of the UK or the EEA, for example because of differences in letting patterns or the length of the tourism season?".

Although Visit Wales and VisitScotland produce occupancy reports for the self catering market, VisitEngland doesn't. But to substantiate that average occupancy is lower in the north of England than elsewhere you'll need to be able to refer to a creditable source of data to justify a lower 'letting' threshold.

[wasco]

Originally Posted by BVC

Incidentally has anyone tried the email link on the PDF document
holiday-lettings-consultation@hmtreasury.gsi.gov.uk
I posted my comments but the mail wasa returned to me as undeliverable. Does anyone have another address? BVC

I've checked with The Treasury and the email address in the consultation document is correct and they have confirmed emails to the above address are being received.