Change to UK tax law on holiday lettings

A tax break designed to boost investment in grass roots UK tourism will soon be taken away as it was deemed in breach of European Union common market rules.

From the start of the 2010 / 2011 tax year furnished properties in the UK available as holiday lettings will no longer be able to be classed as business assets.

There is now a window of opportunity for overseas holiday home owners to apply for a rebate of tax paid on holiday letting income to put against running costs. To be eligible the property must have been let out for ten weeks a year and be available to let for at least 140 days a year.

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