Timeshare & tax

Sazzie23

Hi all

Am a standard PAYE taxpayer and don't fill in a tax return.
Sure this isn't possible or someone would have suggested it to me before, but here goes.

Like many (I know I am a mug) I am lumbered with a timeshare (Malta) I can't afford to use and can't sell. I have tried unsuccessfully to rent it out as people are suspicious of it for some reason.

Could I class it as an investment purchase and somehow reclaim tax losses on it - would this be allowed & how would I go about doing it.

For the past 3 years I have booked the week or my choice but not been able to afford to go so just lost the week. I am upto date with the maintenance fees which are approx £450 this year. It is a floating week, so I'm not really a property owner.

Any useful info/comments appreciated

terryw

I am really sorry that you fell for the timeshare deal. Don't feel too bad though - many other people fall for it. If you are unlikely to use it then look at cutting losses just to avoid the fees. Just to make use of the timeshare, remember that off-season flights to Malta can be really really cheap. Just a thought.

With regard to your specific query, HMRC are unlikely to accept that this is a commercial letting situation, but even if they did losses from income from property can not be off-set against other income. I am certainly not an expert in this area so see what others might say.

Best of British regardless.

chrismac1

You can carry forward the losses indefinitely against future profits from similar properties.

Catherine_Taylor

If you bought timeshare as an investment the chances are that it was sold to you in contravention to the Timeshare Directive, therefore mis-sold, meaning that you might be able to claim the money back and have the contract declared null and void. Where is the timeshare and in what year did you buy it?

booksurr

as chrismac says all you could do would be to roll forward your losses to offset against profits from letting in the future.

In other words it is treated as a normal property letting, not as an investment business, nor does it meet the qualifications for being a Furnished Holiday Let (which latter activity can be offset against PAYE).

It fails the FHL tests because a) it is not available for letting (by you) to the public for more than 210 days per year, and b) it has not physically been let by you for at least 105 days

antenna

If you are no longer interested in using the crimeshare then DO NOT pay any more maintenance fees.
Send them a letter telling them you no longer want the timeshare,once they recieve this letter they can no longer be out of pocket because now they can resell/relet your week.
Do not enter into any further discussion with them.
Do not answer any further threatening letters,if you do they will know they have got you scared.
They might threaten you with legal action (in Malta) no chance.
Just Do It.

antenna

As for getting some sort of tax back,you must realise the following..
You bought nothing,You own nothing,and if you should ever want to use what you thought you bought/owned then it's a further £400 for the privelidge.In Spain 95% of the timeshare price goes up someones nose.............google crimeshare for more info.