Many of you will have benefited from a number of items of tax relief over the years if you have property that have been designated as Furnished Holiday Lettings (FHL).
Even more of you may have been delighted to hear that the rules were going to extend to properties within the EEA (European Economic Area) – the EU plus Iceland, Norway and Liechtenstein. The government thought that it might fall foul of EU regulations.
However as ever the government “giveth with one hand and taketh away with the other”. The thought of giving tax relief to even more tax payers was as much as they deal with so from April 2011 some key rules are being changed.
- Property must be available for letting for 210 days per year (up from 140) and actually let for more than 105 days (up from 70).
- Tax relief, which allows setting losses against other income will be stopped.
If you aren’t sure where you stand with these new regulations then So even if you still qualify for relief it may be more restrictive, and if you don’t qualify then there may be an increased CGT (Capital Gains Tax) exposure. No at all good news.
If you aren’t sure where you stand with these new regulations then feel free to give Lewis Smith & Co. a call to help you sort out your position. Phone 01384 235549 or email email@example.com to arrange a free , confidential discussion.
Lewis Smith & Co. – Accountants for Halesowen, Cannock and Telford