HMRC mulls over tax changes for holiday homes
Hm Revenue and Customs are seeking views on proposals to change the special tax rules for furnished holiday homes which are let out commercially in the wake of the emergency Budget.
Furnished holiday lettings currently benefit from various tax reliefs, normally only available to people with a trade, such as claiming allowances on furniture, kitchen fittings and household appliances used in the property.
HM Treasury and HM Revenue & Customs yesterday published a joint consultation document which makes a number of proposals, including: increasing the minimum period that a qualifying property must be let out for in a year, from 10 weeks to 15 weeks, and ensuring businesses with properties in the European Economic Area are eligible to be treated as qualifying furnished holiday lettings in the same way as businesses with properties in the UK.
You can download the full document from www.hm-treasury.gov.uk/consult_holiday_lettings.htm and submit your views by email to email@example.com.
The deadline for responses is October 22.