An impact assessment for the repeal of the furnished holiday lettings (FHL) rules was published alongside the 2009 pre-Budget report, together with draft legislation. The Government welcome comment on these documents.
After 1 April 2010, businesses providing accommodation which would previously have qualified under the FHL rules, which could include serviced apartments, will need to consider whether the business is a trade or a property business. This will depend on the facts of the particular business. HM Revenue and Customs guidance published alongside the 2009 pre-Budget report, available at:
explains the factors businesses need to take into account.
Treasury Ministers and officials have discussions with a wide variety of organisations as part of the process of policy development and delivery. As was the case with previous Administrations, it is not the Government's practice to provide details of all such meetings.
There are a number of tax cases in which the courts have considered what constitutes a trade. Two cases that consider whether the provision of furnished accommodation amounts to a trade are Griffiths v. Jackson (56 TC 583), which contains an analysis of the case law on the difference between trade and property income, and Gittos v. Barclay (55 TC 633), which specifically looked at whether or not a furnished holiday letting business was a trade. The Library holds a copy of both these cases.
(2) for how many properties for expedited sale furnished holiday lettings tax relief has been awarded.
The information requested is not available, as HM Revenue and Customs' (HMRC) do not hold information on the recipients of farm diversification grants; these are administered by Regional Development Agencies.
An impact assessment on the repeal of the furnished holiday lettings (FHL) rules was published alongside the 2009 Pre-Budget Report, and is available at: