Thursday, 10 December 2009

Holiday Homes Hit in UK pre-budget report from April

The British Government's Pre-Budget presented on Wednesday 9th December 09 by the Chancellor of the Exchequer (Finance Minister) will affect the owners of holiday homes.

Individuals and companies who rent out holiday homes like the ones advertised on the low cost villa advertising service are set to lose their tax breaks and pay the same rate of tax as if they were renting out property in the UK.

Currently, if certain conditions are met, holiday homes can obtain more flexible loss relief, certain capital gains reliefs, additional capital allowances and relevant UK earnings treatment for pension purposes.

The changes to this letting tax will be introduced in April 2010, although those affected will be able to claim 10 per cent wear and tear allowances and the landlord's energy savings allowance.

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