Urgent – Important changes to tax treatment of Furnished Holiday Lettings losses
If you have Furnished Holiday Lettings (FHL) business losses in the current tax year ending on 5th April 2011 this is the last year (2010-11) in which you will be have the ability to set them off against other general income. i. e. earnings, investment income and non-FHL lettings profits etc.
If you already have losses or if you would have losses if you brought forward the timing of necessary expenditure such as repairs to properties to spend before 5th April, you should consider doing so as in future losses post 5th April 2011 will only be offset against other FHL income.
There is a summary of the changes to the tax treatment of FHL here.