Budget response: Only a temporary reprieve for Furnished Holiday Lettings, says the CIOT
The CIOT is relieved to hear that the Government plans to consult over the taxation of Furnished Holiday Lettings (FHL). The previous government had planned to abolish the FHL rules, though the measure was dropped from the pre-election Finance Bill.
John Whiting, CIOT Tax Policy Director, said:
“Many in the FHL sector have been concerned about the additional administration that the withdrawal of the FHL tax rules might lead to. Abolishing the FHL rules means convincing HMRC that there is a trade – otherwise relief would be much lower.
“This isn’t a complete reversal but a welcome sign of the Government listening to calls we and others have made to consult before bringing in changes. It will enable the sector and tax advisers to make proposals to ease the burden of businesses which lose the protection of the FHL rules.”
Notes to Editors
1. The Chartered Institute of Taxation (CIOT) is a charity and the leading professional body in the United Kingdom concerned solely with taxation. The CIOT’s primary purpose is to promote education and study of the administration and practice of taxation. One of the key aims is to achieve a better, more efficient, tax system for all affected by it – taxpayers, advisers and the authorities.
The CIOT’s comments and recommendations on tax issues are made solely in order to achieve its primary purpose: it is politically neutral in its work. The CIOT will seek to draw on its members’ experience in private practice, government, commerce and industry and academia to argue and explain how public policy objectives (to the extent that these are clearly stated or can be discerned) can most effectively be achieved.
The CIOT’s 15,000 members have the practising title of ‘Chartered Tax Adviser’.
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George Crozier
External Relations Manager
D: +44 (0)20 7340 0569
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The Chartered Institute of Taxation
Registered charity number 1037771
www.tax.org.uk
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