The following changes will apply from 6 April 2012:
For a let property to qualify as a FHL the following tests will need to be met:
- Accommodation must be available to let as holiday accommodation for at least 210 days (140 days 2011/12).
- Accommodation must actually be let as holiday accommodation to the general public for at least 105 days (70 days 2011/12).
- The accommodation must not be let for periods of longer term occupation (greater than 30 days) for more than 155 days.
A period of grace election can be made to smooth your lettings history if you have a property that reaches the required criteria in some years but not others.
And don’t forget loss relief changes.
From 6 April 2011 it is no longer possible to set off FHL losses against other earnings or other non-FHL rental income. Losses can only be set off against income from the same FHL business.