FHL

[Windy]

Looks like FHL is here to stay, and capital allowances reduced from 20% to 18% with First Year Allowance cut from 50k to 25K from 2011. Some good news there.

As we are just about to have to register for VAT I'm not overhappy with a rise to 20% as we have to stomach it all to stay competitive in price.

[James3214]

Umm sorry, excuse my ignorance but what exactly is FHL?

I looked at the emergency budget and still can't work out what is actually is!

[James3214]

aah just done a google and found FHL stands for 'Furnished Holiday Lettings'

[Margaret]

Well done for reaching the VAT threshhold - it is vastly lower here, something which is not often mentioned! Now you can see why were so delighted when ours was dropped from 19% to 7% this year!

[WASCO]

The Budget 2010: Furnished Holiday Lettings
"The Government to publish a public consultation over the summer"

Although George Osborne said in his Budget speech the FHL rules would not be withdrawn and the current rules will continue to apply for the tax year 2010-11, the government has yet to decide how the rules will have to be changed to comply with EU regulations. Consequently the government will publish a further consultation which will look at a proposal which would:

• ensure the FHL rules apply equally to properties in the EEA;
• increase the number of days that qualifying properties have to be available for, and actually let as, commercial holiday letting; and
• change the way in which FHL loss relief is given.

For more information see below HMRC's announcement or go to http://is.gd/cZeO5.

HMRC: Budget 2010: Furnished Holiday Lettings http://is.gd/cZeO5

The furnished holiday lettings rules (FHL) will not be withdrawn
from 6 April 2010 (1 April 2010 for companies).

Since 22 April 2009 (Budget 2009), HM Revenue & Customs (HMRC) has applied the current FHL rules to UK taxpayers with qualifying holiday lettings situated elsewhere in the European Economic Area (EEA). Such businesses can currently choose whether to be taxed under the FHL rules or under the normal rules for property businesses. These arrangements will continue to apply for the tax year 2010-11.

The Government will publish a public consultation over the summer about plans to change the tax treatment of furnished holiday lettings from April 2011. The consultation will specifically look at a proposal which would:

• ensure the FHL rules apply equally to properties in the EEA;
• increase the number of days that qualifying properties have to be available for, and actually let as, commercial holiday letting; and
• change the way in which FHL loss relief is given.

Full details about the proposed changes will be published over the summer.

Draft legislation will be published in the autumn, with a view to inclusion within Finance Bill 2011.

For more information go to http://is.gd/cZcGH to view and/or download HMRC's 'Furnished Holiday Lettings - Questions and Answers' guide published 22-Jun-10.

[CSE]

There is no lower limit to IVA (VAT) here in Spain. I also think it is the same in Portugal.
Our IVA is going up from the 1st July 1 or 2% depending on status.

[la vache!]

VAT has been 19,6% in France for ages, but with some exceptions, for building and restaurants now. I wonder if it will still be as cheap for expats and some French to import their shopping from the UK?