http://www.telegraph.co.uk/finance/p...ond-homes.html
Budget 2009: Blow for second homes
From next April, you will lose tax benefits available on your holiday home.
Holiday homeowners will no longer be able to write off “trading” losses from second homes against your tax bill, while capital allowances and capital gains benefits will also go.
Currently a home qualifies as a holiday property if it is furnished, being run as a commercial business and available for rent to the public for at least 140 days per year. It must also be let for at least 70 days a year to attract the tax benefits. They have only been available on properties in the UK.
The one silver lining to the holiday home cloud is that those people in the EU who have holiday lets will benefit from the same allowances until April.
The only way to get around these tax changes is to sell your holiday home. If you sell before April 5 you will be able to claim entrepreneurs’ relief (which means gains of up to £1,000,000 attract a lower rate of CGT).
“This could result in a rush to try to sell qualifying properties before 5 April 2010 and the resulting surplus of properties for sale could delay any recovery in the housing market in seaside towns around the UK,” said Richard Mannion, tax partner at Smith & Williamson.
Budget 2009: Blow for second homes
From next April, you will lose tax benefits available on your holiday home.
Holiday homeowners will no longer be able to write off “trading” losses from second homes against your tax bill, while capital allowances and capital gains benefits will also go.
Currently a home qualifies as a holiday property if it is furnished, being run as a commercial business and available for rent to the public for at least 140 days per year. It must also be let for at least 70 days a year to attract the tax benefits. They have only been available on properties in the UK.
The one silver lining to the holiday home cloud is that those people in the EU who have holiday lets will benefit from the same allowances until April.
The only way to get around these tax changes is to sell your holiday home. If you sell before April 5 you will be able to claim entrepreneurs’ relief (which means gains of up to £1,000,000 attract a lower rate of CGT).
“This could result in a rush to try to sell qualifying properties before 5 April 2010 and the resulting surplus of properties for sale could delay any recovery in the housing market in seaside towns around the UK,” said Richard Mannion, tax partner at Smith & Williamson.
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