Furnished holiday letting

The special rules for furnished holiday lettings were due to be withdrawn from 5 April 2010, but following the General Election, it was confirmed that the special rules would stay, though there may be some changes.

The special rules give landlords of furnished holiday letting many of the advantages of a trade. These currently include advantageous rules for loss reliefs and capital expenditure.

One key point is the number of days for which the property is available to be let, and for which it is actually let, as holiday accommodation. You will need to be able to demonstrate year by year that these tests were met.

The detail of the special rules can be found on the HMRC website at http://www.hmrc.gov.uk/manuals/pimmanual/PIM4105.htmThese rules are complicated and currently HMRC are considering further changes to them. If you think you may be letting holiday accommodation to which the rules might apply you may need to seek further advice.