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Letting go

02 October 2012 / Mairi Drummond
Issue: 4373 / Categories: Comment & Analysis , Land & property
New rules for furnished holiday lettings are summarised by MAIRI DRUMMOND


  • A summary of the tax reliefs available for furnished holiday lettings.
  • The new furnished holiday letting qualification conditions from 6 April 2012.
  • The consequences of failing to meet the conditions.
  • The averaging and “period of grace” elections.
  • Entrepreneurs’ relief and crystallising a gain.

As an owner of furnished holiday accommodation and a tax practitioner it is with keen interest that I follow the changes in the taxation of these properties.

The new rules which apply from 2012 mark a fundamental change for owners. To continue to receive the privileged tax treatment lettings must meet more stringent qualifying conditions and in this article I examine the implications for owners.

The beneficial treatment

The furnished holiday letting (FHL) rules were introduced by the...

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