Good news for Landlords, even if it is only temporary.

 The 2010 Finance Bill was to include the abolition of furnished holiday letting tax relief. The recent “wash-up” due to parliament being dissolved means matters elements of the Bill were either rejected or passed quickly. One of the matters rejected, albeit temporarily, were the proposed changes to the tax treatment of furnished holiday lettings.

The tax concession allows losses made on certain holiday lettings to be set against other income. This was particularly helpful to hotels, static caravan owners and holiday home owners. Had the bill been passed, this would have been withdrawn from 6 April 2010. 

The reasons for withdrawing it were quite sound really. The rules only applied to UK properties, not those in the EU. This put them in potential contravention of European law, so the government simply withdrew this rule (as opposed to extending the rules to cover the whole of Europe.)

If it wins, the Labour party plans to reintroduce the law.