UK Government set to change holiday let tax rules
Consultations are going ahead on the proposed changes to the tax benefits for UK property owners who own a holiday home either in the UK or within the countries in the Eurpoean economic area.
Gordon Browns Labour Government planned to remove virtually all tax benefits for owners of furnished holiday accommodation. The new coalition government abondoned that idea in the midst of tax reform suggested in the emergency budget during June.
Current rules dictate that a holiday home property needs to be available to let for 140 days per year and only needs to be let for a minimum of 70 days for the owner to qualify for tax benefits - new proposals suggest the property would need to be let for at least 105 days and available to let for 210 days per annum.
A decision will be made towards the end of October meanwhile many UK property owners are thinking twice about staying in the rental business.