Impact on individuals of the changes to furnished holiday lets taxation

On 29 July the new government published draft legislation to implement the abolition of the specific tax regime for furnished holiday letting. There was no accompanying tax policy commentary to clarify the position of the new government on this inherited tax policy nor specific response to the lobbying and informal consultation that has taken place with interested parties since Jeremy Hunt’s Spring Budget on 6 March.

Given the context of the announcements on 29 July by Rachel Reeves it is unsurprising that the new government has not wanted to forego a tax raising measure.

To that extent I was already convinced that higher and additional rate tax relief on loan interest was going to be restricted on furnished holiday lets (FHLs) whatever happened and that a 10% capital gains tax (CGT) rate on the sale of residential property is no longer an acceptable tax policy....