Posted 10 December 2010 by Andrew Gardner
The draft regulations for Furnished Holiday Lets (FHL) has now been announced and legislation will be introduced into the Finance Act 2011. The changes to the tax law cover:
Generally, the changes have effect on and after 1 April 2011 for companies and 6 April 2011
for individuals and partnerships.
The increase in the number of days for which a property is actually let or available in order to qualify for FHL will have effect from 1 April 2012 and 6 April 2012 for companies and individuals (and partnerships) respectively. The law will be changed by Finance Bill 2011 so that:
The changes identified within the consultation document issued back in June have been implemented much as expected, although the increase in minimum period over which a qualifying property must be available for letting and is actually let has been deferred until April 2012.
These changes to the number of days should not affect many owners established in the market, however it is a valuable deferral for those owners new to the market where a lead in of a couple of years is needed to fully establish the property. As such in order to maintain and help build the sector this date extension is helpful.
If you are interested in reading the draft regulations in full then click here.