Major holiday home tax break changes could cost you thousands!

publication date: Apr 27, 2009
author/source: Kate Faulkner

In the recent Budget, the Chancellor announced that properties owned within the European Economic Area can now qualify for the same tax regime as applied to furnished lets within the UK.  From 6th April 2010 the Furnished Holiday Lettings rules are to be scrapped.

Furnished holiday lets are treated, from a tax perspective, very differently to any other form of letting. For example, in certain circumstances you can reduce the amount of Capital Gains Tax you pay versus other second property ownership.

From next year, you can take advantage of these tax breaks both in the UK and Europe, however from 2010 they will all be scrapped as holiday properties will no longer be treated as business assets, meaning that landlords will no longer be able to write off trading losses from second homes against their tax bill.

Are you eligible tax back under the new rules? If you have a property abroad (or in the UK) that meets teh following criteria:-

1. Let furnished
2. A commercial business
3. Available for let for 140 days each year

You only have until 31st July 2009 to take advantage of these short term tax breaks, so find out if you are eligible NOW! However, because property tax is incredibly complicated and you need specialist advice from an expert, this can cost £200 per hour, but can save you thousands.

If you need professional property tax advice contact us or tel 07585 897128, so we can put you in touch with property tax specialists.

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