Government Consultation on Furnished Holiday Lets

The proposals in this consultation document have been confirmed and will take effect from April 2011 with the exception of the minimum weeks proposal which will start from 2012.  Qualifying properties will retain their status for 3 years regardless of the weeks let but otherwise the rules will be as described here.

The much anticipated consultation document on furnished holiday lets has been released.  There are both good and bad things in it for our clients and you can download the full document here.

On The Good Side

• The Government has recognised the importance of furnished holiday lets
• The current rules will apply for the 2010/11 tax year

Neutral Proposals

We actually welcome this tightening of the rules- if you are letting less than 13 weeks a year then you don't really have a holiday business and it is probably tax payout to just this sort of hobby property that is prompting the government to restrict the rules for those of us running genuine businesses.

On The Bad Side

• It is proposed that losses generated by furnished holiday lets will not be alowed offset against other income, but only be allowed against future profits.

This removes an important benefit that encourages investment in the UK's holiday properties and sets furnished holiday lets apart from other businesses.  We will campaign against this measure and urge all of you to do likewise by sending an email to