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The Government has decided that it will go ahead with proposals to extend the availability threshold for furnished holiday letting (FHL) to 210 days and an occupancy threshold to 105 days but not until 2012.

Legislation will be included in the 2011 Finance Act to also proceed with proposals: 

Businesses which meet the revised occupancy threshold in one year will be permitted to elect to be treated as having met it in the two following years, providing certain criteria are met.

The decision comes as a result of this summer’s consultation following the Government’s decision to abandon the changes proposed by it predecessor to end the favourable tax regime for FHL. 

Source: HM Treasury consultation responses

Notes for subscribers

Our Furnished Holiday Letting note is being updated and subscribers will be shortly notified of the update.