Furnished Holiday Letting (FHL).

With effect from 6 April 2010, as announced last year, the tax advantages of Furnished Holiday Letting businesses will be withdrawn. Income from FHL will be then treated in the same way as income from other property rents.

This means a number of Capital Gains Tax (CGT) reliefs will no longer be available, and there will be less advantageous offset of losses. However, Entrepreneurs’ Relief will still apply to disposals of a FHL property within 3 years of 5th April 2010, potentially reducing the effective rate of CGT on up to £2m of gains from 18% to 10%.