In the first two years of trading there has been a bottom line loss on our holiday lettings business.    We understood that this could be set against other income.  Is this correct?

Arthur Weller replies:

Until 5 April 2011, what you write was correct. But from 6 April 2011 onwards the rules were changed, and a loss in a qualifying furnished holiday lettings (FHL) business cannot now be set off against the taxpayers other income. The losses can only be carried forward and set against profits from the same FHL business.