Tax rules on holiday rentals

dayglo · #1 (**permalink**) 12-17-2009, 10:11 AM

My parents have a second UK property that they use for furnished holiday lettings. Now that there seems to be a change in the tax rules surrounding this, they are seriously considering selling the house, would it make any difference when they sell it?

Ray Coman · #2 (**permalink**) 12-17-2009, 11:13 AM

If you have decided that you are going to sell the property, then from a tax perspective it would be better to sell the house before the new changes take effect on 6 April 2010. Your potential capital gains tax liability could be much lower if you were able to exchange before this date.