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Tax blow for owners of British holiday lets

Thrugelmir
Thrugelmir Posts: 89,546 Forumite
Part of the Furniture 10,000 Posts Name Dropper Photogenic
in Debate House Prices & the Economy
Good news for those wishing to buy in more rural areas. As budget tax changes are making holiday letting less viable.

A summary of the changes. In brackets the old rules.
  • Property must be available to let for 210 days a year (140 days).
  • Must be let for at least 105 days (70 days)
  • Lossess can only be offset against profit from another qualifying holiday let ( lossess could be offset against any source of income).
All those Devon, Cornwall and Pembrokeshire retreats aren't so tax efficent now.........
Nor Aberdeen crofts.
«13

Comments

  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    it doesn't affect everyone - it affects less than a third of holiday lets
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    edited 3 August 2010 at 10:07PM
    Effects an estimated 20,000 holiday lets.

    Thats quite a lot, considering holiday lets are often centralised in local areas.

    Those running them as a real business will be fine.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    am i right in saying that this wasn't announced in the budget and only announced recently?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The actual "budget book" contains many amendments and changes to tax legislation that aren't announced in the budget speech. As of relative insignificance in the overall scheme of things.
  • carolt
    carolt Posts: 8,531 Forumite
    How gutting for all those greedy !!!!!!!s.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Thrugelmir wrote: »
    The actual "budget book" contains many amendments and changes to tax legislation that aren't announced in the budget speech. As of relative insignificance in the overall scheme of things.
    so they hid it then
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    carolt wrote: »
    How gutting for all those greedy !!!!!!!s.

    Not sure why running a business is particularly greedy.
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • smamst
    smamst Posts: 1,545 Forumite
    What happens to people who have bought holiday lets in rural areas and they don't meet the new conditions or even for that matter the existing conditions?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    chucky wrote: »
    it doesn't affect everyone - it affects less than a third of holiday lets

    For someone that trumpets how they operate so tax efficently. I'm surprised that you didn't work out the advantages of a holiday let. Particularly as all losses including mortgage interest were allowable against personal tax.
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Thrugelmir wrote: »
    For someone that trumpets how they operate so tax efficently. I'm surprised that you didn't work out the advantages of a holiday let. Particularly as all losses including mortgage interest were allowable against personal tax.

    Subject to the whims of a Tory govt icon7.gif
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
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