Which Cottage News

Archive for April, 2010

April 16th, 2010

Chaos in furnished holiday lets

No Comments, Holiday Cottage News, by Veronica & Anne.

As far as we are aware the fact the FHL ( furnished holiday lets) measures that were dropped from the Finance Bill have caused nothing but confusion and it’s very difficult to say what will happen. Below is a brief article from our company accountants outlining what could happen but it would appear we will have to wait until after the General Election for some clarity. Chaos in furnished holiday lets In the interests of having the Finance Bill legislation passed in time to dissolve Parliament, the measure abolishing the favourable treatment of furnished holiday lettings (FHL) has been dropped.  What is not at all clear is what will happen next. Labour have stated that the measures removed will be introduced in the next Finance Bill, immediately after the General Election.  It is not clear whether the measure could then be started with effect from 6 April 2010, or whether there would possibly be a one year delay.  One thing that is sure is that if Labour returns to power, the measure will reach the statute books very quickly.  Other parties, whilst keen to see the measure dropped from the Bill have made no clear commitment on tax breaks for this area. What may happen if another party comes to power is that alternative provisions could be introduced which allow genuine holiday letting businesses continue to qualify for the tax reliefs as a business and withdraw them for those who own a second home, who let it out and offer it to friends and family…