editor@newlifenetwork.co.uk
 
/images/banner180x150_v2a
 
Print Print-friendly version
Home | The budget - finally some good news

The budget - finally some good news

Posted on Monday, 27 April 2009 11:02AM by Kieran O'Connor, Cambridge Tax Practice
You may have noticed that we didn't issue a summary of this year's Budget. Frankly, it was just too depressing and the tax points were not actually very interesting.

Rental Property and Losses - Holiday Homes

However, deep within the Treasury press releases, HM Revenue & Customs have announce changes to the rules for holiday rental properties.

Up to now, if you make a loss on a holiday property in the UK, the loss can be set against your other income in the same year but this loss relief is not available for holiday properties outside the UK.

This loss relief is not available for normal rental properties - rental property which is not holiday accommodation can only offset losses against other rental income.


New Rules

Following a ruling by the EU, HMRC have said that they are withdrawing this relief from April 2010.

But in the meantime, to comply with the EU ruling, HMRC have admitted that the loss relief rules can now be applied to any holiday property in the EU.


Claiming Losses

So, if you have a holiday rental property within the EU where a loss has been incurred at any time in the last 5 year we can now claim to set that loss against other income in the year and reclaim the tax overpaid, plus interest.

As usual, with tax claims there are certain conditions which the property must meet :

For a property to qualify as a 'furnished holiday lettings’ it must be

*    furnished
*    available for letting to holidaymakers for at least 140 days a year
*    let out for at least 70 days a year
*    not occupied for more than 31 days by the same person in any seven-month period.

So, if you have a property that qualifies, this may be the one silver lining in amongst all of those clouds.

Kieran O'Connor
Director
For and on behalf of Cambridge Tax Practice Ltd
www.cambridgetax.co.uk/news.htm

Content search
Follow mycareersadvice on Twitter
 
/images/mygrad_sm_1
Home|Redundancy help|Expert career advice|Find a great new job|Senior executive careers|Graduate careers|Be your own boss|Learn new skills|Redundancy help for employers|About us|Advertise|Sitemap
 Copyright © newlifenetwork.co.uk 2012
Directory Software by Global 7