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10.12.09 - New Rules on Furnished Holiday Lettings |
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The Chancellor Alistair Darling has confirmed new rules in his pre-budget report 2009 with regards to furnished holiday lets and they are as follows:-
The current furnished holiday lettings provisions (now applying to UK tax payers with qualifying lettings elsewhere in the EEA) will be withdrawn with effect from 6 April 2010.
From that date, furnished holiday lettings will be dealt with under the normal rules for the letting of property and hence the following tax reliefs will no longer be available:-
- income tax sideways loss relief and capital allowances for new expenditure
- capital gains tax entrepreneurs' relief, business assets roll-over relief, relief for gifts of business assets; and
- exemptions for disposals of shares by companies with a substantial shareholding.
From 6 April 2010 income from furnished holiday lettings will cease to be relevant income for pension relief purposes.
You should seek the advice of an accountant or your finanacial adviser to ensure that you keep the appropriate records and make the correct returns to HMRC in order to maximise the tax advantage of your investment.
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