Year End Tax Review 2010/2011


Lead articles

Looking forward

This year, next year

Rate of change

Pension merry-go-round


Too much NIC

NIC and pensions

Company cars

Tax-free benefits

Childcare vouchers

Business - General

Time to incorporate?

Associated or not?

His and hers

Family bonus

Profit and loss

Show me the money

Can't pay, won't pay?

Turning back the clock

Business - VAT

Standard VAT or flat VAT?

VAT's up again

All Europeans now

A good start for VAT

Happy returns?


Top-up savings

Rainy day money

Capital Gains

Gains favoured

Splitting gains

A place in the country

Holiday lets reprieved


Family fortunes

Where there's a Will

Credits and debits

Benefit going

Piggy banks

Still trustworthy?


Penalty shoot-out

Going online

Paperwork, paperwork

Pay tax later

Opportunity knocks again


Give and save

Non-Domiciled People

Home and away


Interesting times

Holiday lets reprieved

In his last Budget Mr Darling confirmed an intention to end the favourable treatment of furnished holiday lettings (FHL) as a "trade" rather than as property investment. The Conservatives removed this from Labour's last Finance Act and said they would reform the rules rather than abolishing them. They have now announced the main changes that will be introduced:

  • restriction on the ability to relieve losses against other types of income (from April 2011);

  • 50% increase in the time for which a property must be available and must be let in order to qualify (from April 2012).

Anyone who has benefited from the advantageous treatment of FHL in the past should now review the changes to see if they are adversely affected. If an owner's properties all cease to qualify on the change of rules, it could still be possible to enjoy one CGT advantage Entrepreneurs' Relief, charging a rate of only 10% on the gain provided that the disposal is timed correctly.

Action Point!
If you have any FHL, think about the change of tax treatment