Tax Rollercoaster The tax rollercoaster on Furnished Holiday Lettings continues. The previous government had stated that the furnished holiday lettings (FHL) rules would be withdrawn with effect from 6 April 2010. However it has been announced at the Emergency Budget that this change will now not take place. The rules will allow holiday lettings that meet certain conditions to be treated as a trade for some specific tax purposes. This is great news for all the individuals, partnerships, trustees and companies who let furnished holiday accommodation situated within the UK or anywhere else within the European Economic Area (EEA). So what are the advantages? Income Tax advantages Losses from a qualifying Furnished Holiday Let (FHL) can be set against other taxable income in the current or previous tax year. For a property rental not qualifying as a FHL a loss incurred can only be set against other rental income rather than all taxable income. Profits from a FHL are treated as earnings for pension contribution purposes. Capital allowance claims for expenditure on furniture and furnishings are available on a FHL. Such items as washing machines, kitchen equipment, bathroom and sanitary wear, central heating, furniture, furnishings and insulation will qualify for either Plant & Machinery allowances or Integral Features allowances. The existing rules allow the first £100,000 of qualifying expenditure for Capital Allowances to obtain the “Annual Investment Allowance” and a 100% tax write off. Currently the FHL profits or losses do not necessarily have to follow the ownership of the property. This can have tax…
Archive for June, 2010
Tax Rollercoaster On Furnished Holiday Lettings ContinuesNo Comments, Holiday Cottage News, by Veronica.
New Holiday House in Argyll on the West Coast of ScotlandNo Comments, Holiday Cottages in Scotland, by Veronica.
New rental property on West Coast of Scotland – Summer 2010 availability We welcome this 4 bedroom (sleeping 8 in comfort) property to Which Cottage this luxury house, Seabank, is situated near the small village of Benderloch on the West Coast of Scotland. Just 10 miles north of Oban and under an hour’s drive from Fort William this is an ideal base to explore the delights of Argyll and the islands off the West coast. Seabank Lodge is an architecturally designed, luxury cottage which offers spacious and extremely high quality self catering accommodation with one of the finest views on the West coast of Scotland. It has an outdoor Jacuzzi hot tub in the garden and is a wonderful place to escape to and relax with family or friends. The house is suitable for assisted wheelchair users as it has a double bedroom on the ground floor with an en-suite wheel-in wet room with power shower. Activities – there are endless activities nearby, from walking in Glencoe to cycling on the island of Lismore. As Seabank is close to the sea, there is an abundance of sea sports available such as sea kayaking, sailing, windsurfing and scuba diving. In fact, as the house slopes down to the shore of the sea loch, it is ideal for launching small boats or kayaks. For the more adventurous there is downhill mountain biking at the Nevis range. Any keen ‘Munro baggers’ or climbers will also find ample opportunity to climb some in Argyll. Given the proximity to Oban…
Latest Scottish Addition to WhichCottage.com1 Comment, Holiday Cottage News, Holiday Cottages in Scotland, by Veronica.
Recently added 2 bedroom self-catering holiday cottage in Scotland – overlooking a sea loch. Summer holiday availability.