Owners of holiday homes lose tax relief on interest and expenses benefits | Money | The Guardian

Owners of holiday homes lose tax relief on interest and expenses benefits | Money | The Guardian

Thousands of owners of holiday homes are about to lose a major tax benefit as a result of changes that come into force on Wednesday.

Until now, those letting holiday accommodation were allowed to offset the cost of repairs, furniture and fittings against capital gains tax when they sold up and, more importantly, used losses they incurred on that home's "business" to lower their annual income tax bill.

It is thought about 65,000 UK families currently benefit from the "furnished holiday lettings" (FHL) rules, costing the Treasury millions. The rules apply to holiday lets in the UK and anywhere in Europe – defined as the European Economic Area.