It appears that the much-heralded abolition of the tax breaks for Furnished Holiday Lets has been dropped.

These tax breaks have remained very much in place for the tax year 2010-11. This allows the treatment of holiday letting activities as a trade providing a whole host of generous tax benefits including the very generous Entrepreneurs' and Capital Gains Tax (CGT) Rollover Relief. The facility to offset rental losses against other income continues.

However, the Government will be publishing a public consultation with a view to changing the tax treatment of Furnished Holiday Lets later this Summer. Possibly changes will come into effect from 6 April 2011 and may include:
  

• An increase in the number of days qualifying properties have to be made available for letting and actually let. 
• A change in the way loss relief is given.
  

Moore Hill Accountants of Warrington WA3 will keep you informed of any changes as soon they become clear. Should you require assistance with the completion of your self-assessment return for the tax year please feel free to contact us on 01925 830830.