The Government has just published a consultation document on proposals to ensure that the tax rules for Furnished Holiday Lettings (FHLs) meet EU legal requirements in a fiscally responsible way. The proposed changes, which will take effect from 1 April 2011 for companies or from 6 April 2011 for individuals, seem encouraging for those that run a self-catering holiday home on a full time business, and should appeal to those who are considering entering the holiday lettings industry.

The three main changes being proposed by the Treasury are: