# Tax Relief



## MaidenScotland (Jun 6, 2009)

Ever since the 2009 budget, owners of holiday rental homes in Europe have been granted the same tax breaks that apply to UK based property lets.

This is due to end on the 5th of April 2011. There are several conditions and it is imperative to get professional advice, but the tax breaks can be substantial.

Furnished rental properties
Owners of furnished rental properties, generating a declarable income, are given various tax advantages. Individuals are able to offset any trading losses from these properties against their other income.

If your expenses, for example, including mortgage interest rates, are greater than the income generated by renting the property, this loss can be offset against other UK tax paid income, thereby generating tax refunds. Conversely, this loss can be projected forward and offset against future rental profits, thus avoiding future income tax.

A good chartered accountant will also be able to further enhance these losses by claiming ‘Capital Allowances,’ by undertaking a furnished holiday letting capital allowance survey, this would further maximise the tax benefit.

Amongst the conditions are;

You need to be a UK taxpayer receiving an income – whether throughout employment or pension.
To be an owner of a furnished property (in the EEC) which is available to let for a minimum of twenty weeks a year.
The property needs to have been rented for at least ten weeks in the last year.
You also need to be able to confirm that the property has not been let continually to the same person for more than thirty-one days.
One important point is the tax relief is applied retrospectively – meaning that you can claim the tax relief on properties (even if they have since been sold) going as far back as 2007. Interest is even payable on the tax refund.


I had this sent to me through today and thought I would pass it on...


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