Jump to content
House Price Crash Forum
Sign in to follow this  
cashinmattress

Holiday Lets To Lose Tax Break

Recommended Posts

Tax advice of the week: holiday lets to lose tax break

For years, the taxman has treated UK furnished holiday lets as a business, so any losses can be used to reduce the tax on other income. It turns out, however, that the current rules are not compliant with European law and therefore, as the small print in Alistair Darling's last Budget reveals, the "special tax treatment" will end on 5 April 2010.

This tax concession doesn't just relate to losses, says Myra Butterworth in The Daily Telegraph – there are other tax breaks available to reduce inheritance and capital-gains tax, which will also be withdrawn.

That's bad news, but it does at least still leave the "door ajar" for maximising tax relief. If your holiday let loses money (accountants Baker Tilly estimates that owners lose around £10,000 on average on each property every tax year), get those maintenance jobs you've been putting off done soon.

Check your holiday let qualifies for the special tax relief first (see PIM4110 on HMRC's website) and don't confuse repair costs with improvements, which "count as capital expenditure and aren't deductible for income tax".

Keep this in mind if you are renting out a caravan etc...

Share this post


Link to post
Share on other sites
Anyone would think this govt is desperate for cash.

I don't understand why they didn't limit interest relief for BTLers - if it was up to me I would restrict tax relief based on a 100% (or less?) mortgage on the initial purchase - stopping people from leverging up.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   291 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.