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E U Law: No Tax Breaks For Multiple Homes

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http://uk.finance.yahoo.com/news/second-home-owners-to-lose-tax-breaks-tele-35ac038cb537.html?x=0

Second home owners to lose tax breaks :( *

Myra Butterworth, 10:55, Friday 30 July 2010
Tens of thousands of second home owners stand to lose generous tax breaks on furnished holiday lets.
The tax advantages on furnished holiday lets were reinstated by the Coalition after the previous Government abolished them in April.
George Osborne reversed the measure in the June Budget saying he wanted to help small businesses operating in the tourism industry.
However, the Treasury has now said it intends to make it much tougher for home owners to qualify for the breaks.
The move comes as the Government prioritises reducing the countrys deficit.
Under the proposals, home owners will need to secure more bookings and will no longer be able to offset their mortgages costs against their personal income. This tax break is one of the main financial reasons for investing in a furnished holiday let as it helps to reduce an individuals overall tax liabilities.
The new proposals aims to bring the rules in line with EU law
and make them focused on commercial businesses rather than those run for personal use.

Old news, I know, but the EU law bit adds a bit of spice.

* :lol::lol::lol::lol::lol::lol::lol:

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Old news, I know, but the EU law bit adds a bit of spice.

You are misunderstanding what EU law it was that caused this.

The previous UK tax rules for holiday letting was applicable only for UK based property and a rulling at an EU court decided that whatever rules a tax authority used must be applied to all property whereever it was located.

So, in order to avoid a big bill for having to allow foreign homes the "holiday lettings" relief the previous government decided to abolish the relief alltogether.

Now that the LibCons have reinstated it they had to make the qualifying rules stiffer in order not to lose a lot of money.

Note that several other countries have also been caught out by this EU rule in other ways, E,G. the Spanish used to have a different rate of CGT payable on the sale of a house depending upon its owner's domicile. They had to scrap this and were forced to pay back millions to previously overtaxed people.

tim

Edited by tim123

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http://uk.finance.yahoo.com/news/second-home-owners-to-lose-tax-breaks-tele-35ac038cb537.html?x=0

Second home owners to lose tax breaks :( *

Myra Butterworth, 10:55, Friday 30 July 2010
Tens of thousands of second home owners stand to lose generous tax breaks on furnished holiday lets.
The tax advantages on furnished holiday lets were reinstated by the Coalition after the previous Government abolished them in April.
George Osborne reversed the measure in the June Budget saying he wanted to help small businesses operating in the tourism industry.
However, the Treasury has now said it intends to make it much tougher for home owners to qualify for the breaks.
The move comes as the Government prioritises reducing the countrys deficit.
Under the proposals, home owners will need to secure more bookings and will no longer be able to offset their mortgages costs against their personal income. This tax break is one of the main financial reasons for investing in a furnished holiday let as it helps to reduce an individuals overall tax liabilities.
The new proposals aims to bring the rules in line with EU law
and make them focused on commercial businesses rather than those run for personal use.

Old news, I know, but the EU law bit adds a bit of spice.

* :lol::lol::lol::lol::lol::lol::lol:

for what it's worth,I agree with this.

I'm in favour of a civic tax multiplier for those who own multiple homes....with no tax loopholes like registering it all as a limited company and then claiming it back on expenses.

if people are rich enough to own 10+ properties,they can well afford to pay their fair share into the local economies that don't have the luxury of people living in the other 9 sometimes vacant domiciles.

second homes may look pretty,but if they are only used for 2 months of the year..then places like wales,cornwall and the lakes lose substantial amounts as the only industries they are capable of sustaining are seasonal...and the rest is begged from central government in handouts.

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  • 146 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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