Second homeowners lose tax breaks

As many as 20 per cent of homeowners with a second property could be forced to sell their homes after Mr Darling abolished tax breaks on furnished holiday lets, accountants warn. Changes to the rules come into effect in April 2010 and will stop owners of properties offsetting the costs of renting out their second home against other income, reducing their overall tax bill. Up to 10,000 properties worth around £200,000 each could be affected, with the owners losing on average £10,000.