FHL rules consultation

Last Updated: 09 Jul 2010

After the regulatory hiatus associated with the election, government departments are now back to work in turning the policies of the new Government into legislation. First out of the blocks as far as the accommodation sector is concerned will be the revision of the Furnished Holiday Letting rules.

This consultation is due out before the end of July and will be open to public submission for three months with the resultant legislation coming into force in 2011.

The consultation on Furnished Holiday Lettings will focus on two key issues which the Government wants resolved to ensure that the more favourable tax treatment received by self-catering operators is not misused by the owners of second homes. To this end, the Government will be proposing two things.

1. To increase the number of weeks that a property is let during the year to qualify for treatment as a FHL property
2. To reduce the ability of operators to offset loss relief from self-catering properties against other income.

When the consultation document is released, we will inform readers of the detailed proposals and how you can make a submission.