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Furnished holiday lets

The special tax regime applying to holiday lets of furnished accommodation is very advantageous. However, they only applied to UK properties and under the guise that the UK tax-favoured rules may not be compliant with European rules, the intention was to repeal them from 6 April 2010. Indeed, the necessary legislation was in the Finance Bill following the Budget. With the General Election imminent, the Government had to get the Bill passed quickly. Under pressure from the opposition, the Finance Act received Royal Assent only if the repeal legislation was dropped.

This means that we still have this special tax treatment and it is quite possible that it will remain with us indefinitely. Furthermore, it applies also to non-UK lettings in the EEA as well as in the UK provided the basic requirements are met. This could give some new tax advantages and we will be pleased to discuss the opportunities with you.

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