IHT business property relief and furnished holiday lettings – harder than before?

For many income tax and capital gains tax purposes, the letting of furnished holiday accommodation can be treated as a trade provided a number of conditions are satisfied. Thus losses from the commercial letting of furnished holiday accommodation may be offset against income from other sources, like trading or employment income as well as rents from other properties. Gains arising on a sale of such properties may qualify for roll-over relief, like gains arising on a sale of land used for a trade by the owner, and if such properties are gifted the gains then arising may be held over under s165 TCGA 1992. These reliefs are given pursuant to specific statutory provisions such as s503 and s504 Taxes Act 1988 and s241 TCGA 1992.