Furnished holiday let owners beware!
20th February 2013
Over the past few years we have seen a significant amount of changes affecting the Furnished Holiday Letting sector. From April 2011, FHL income ceased to be treated as a trade and sideways loss relief was no longer available. The rules for Capital Taxes, i.e. Capital Gains Tax and Inheritance Tax remained unchanged.
Nevertheless, the debate still remains as to whether or not a FHL property qualifies as a business asset. A recent case, which was overturned by the Upper Tier Tribunal, not only emphasises the issues surrounding FHL property but should make FHL owners nervous as to the likely exposure they have to Capital Gains Tax and Inheritance Tax.
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