Q. My investment property was let as furnished holiday accommodation until 31 August 2013. As I was not getting enough income as holiday lets I have let it on rolling six month tenancies from September onwards. How do I report the income? Should I split the year at 31 August, with the first five months treated as holiday lettings and the remaining period as normal property let?

A. For the property to qualify for the special tax reliefs due for furnished holiday lettings (FHL), it must qualify as FHL for the full 12 months. One of the conditions is that it must be available for holiday lettings for 210 days in the year. Your property was only available for holiday letting for 149 days, so it does not qualify for FHL for 2013/14. You should treat all of the income from the property as ordinary let property income in 2013/14. Assuming the property qualified as FHL in 2012/13, your FHL business is treated as ceasing on 5 April 2013. You may need to calculate closing balances for capital allowances at April 2013. We can help you with that.

Q. What happened to the Furnished Holiday Lettings rules in the Budget?

A. The tax rules and exemptions for furnished holiday lettings (FHL) remain in place and unchanged at least until 5 April 2011 (1 April 2011 for companies). However, the Government has said that it will consult on changes to the FHL rules to be introduced from 6 April 2011.Those changes are likely to include a restriction on how losses from FHL can be set off, and a tightening of the conditions which will allow the tax reliefs for FHL to be claimed.