FHL rules apply to UK taxpayers who let out holiday homes on a short-term basis.
If certain conditions are met individuals letting a property will be considered as trading a different position to those renting out properties to tenants as their home.
This enables certain advantageous tax treatments to be applied in relation to CGT capital allowances and losses.
It was however announced in April 2009 that the FHL rules were likely to be non-compliant with EU law due to the different tax treatment of properties in the UK as compared to the rest of the EEA.
As a consequence the rules were extended to include properties in the EEA but with an announcement that they would be repealed altogether from April 2011.
This resulted in immediate protest from organisations such as The Tourism Alliance...
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FHL rules apply to UK taxpayers who let out holiday homes on a short-term basis.
If certain conditions are met individuals letting a property will be considered as trading a different position to those renting out properties to tenants as their home.
This enables certain advantageous tax treatments to be applied in relation to CGT capital allowances and losses.
It was however announced in April 2009 that the FHL rules were likely to be non-compliant with EU law due to the different tax treatment of properties in the UK as compared to the rest of the EEA.
As a consequence the rules were extended to include properties in the EEA but with an announcement that they would be repealed altogether from April 2011.
This resulted in immediate protest from organisations such as The Tourism Alliance...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
