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Arnold J Renter

Holiday Home Treasury Consultation

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Apologies if this has already been posted.

The government wants our views on whether the current tax breaks for "furnished holiday lettings" should be modified.

In short, current situation is....... Buy holiday home - let it out for a few weeks to friends & family (or indeed, pretend to let it out!) - pretend it is a business - offset losses against other income.

The result of this is that owners of holiday homes can receive a 40% taxpayer subsidy (and property prices go up!).

The new proposals will help close this loophole by ensuring that the losses from the "business" can only be offset against future income from the same business.

You can make your feelings known here......

http://www.hm-treasury.gov.uk/consult_holiday_lettings.htm

or directly by email: holiday-lettings-consultation@hmtreasury.gsi.gov.uk

Closes 22/10/10.

Edited by Arnold J Renter

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The new proposals will help close this loophole by ensuring that the losses from the "business" can only be offset against future income from the same business.

Great idea, don't waste any time!

Blatant tax loophole.

I think people even do it with luxury yachts. Buy a yacht.. rent it out a couple of times a year to friends, claim back the depreciation as a business expense.

Absolutely no reason for it at all.

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I've never understood why this situation ever arose in the first place.

because there never used to be a problem with "second home owners" abusing it

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because there never used to be a problem with "second home owners" abusing it

It has always been an abuse in that those doing it were effectively redirecting their income tax to pay for their holiday home mortgage - at the expense of everyone else. Quite wrong and the situation should be chnaged to the buy to let position.

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It has always been an abuse in that those doing it were effectively redirecting their income tax to pay for their holiday home mortgage - at the expense of everyone else. Quite wrong and the situation should be chnaged to the buy to let position.

What I meant was:

"There didn't use to be (many) people doing this"

tim

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  • 238 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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