A quick update on the Furnished Holiday Let situation.......
This is a strange story, where political issues have had a direct effect on tax legislation.
The special tax regime applying to holiday lets of furnished accommodation is very advantageous. However, they only applied to UK properties and under the guise that the UK tax-favoured rules may not be compliant with European rules, the intention was to repeal them from 6 April 2010. Indeed, the necessary legislation was in the Finance Bill following the Budget. With the General Election around the corner, the Government had to get the Bill passed in a ridiculously short time (in fact, they allowed a paltry 2 ½ hours’ debate!). Under pressure from the Opposition, the Finance Act received Royal Assent only if the repeal legislation was dropped.
This means that we still have this special tax treatment and it is quite possible that it will remain with us indefinitely. Furthermore, it applies also to non-UK lettings in the EEA as well as in the UK provided the basic requirements are met. This could give some new tax advantages and we will be pleased to discuss the opportunities with you.
As ever the information provided is for reference only and should not he relied upon in any way. Crump Pearce & Co cannot be held responsible for any loss caused as a result of acting or not on the information included within this blog. Professional advice should always be sought before making any decision.
Tim Pearce FCCA
Director
Crump Pearce & Co Ltd
Chartered Certified Accountants
43 Merstow Green
Evesham
Worcestershire
WR11 4BB
01386 49999
hello@crumppearce.co.uk
www.crumppearce.co.uk
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment