Tax relief deadline looms for holiday homeowners

Country:  UK

13 July 2009

Landlords of holiday homes overseas that they let out may be entitled to a tax rebate, but they must proceed swiftly, as the deadline for submitting claims to HM Revenue & Customs (HMRC) is the end of July.

Anyone who can show that their overseas holiday home was let as “furnished holiday lettings” during 2006/7 could potentially be eligible for furnished holiday letting relief, which permits owners to offset any loss against all other income including their salary.

Landlords who would have qualified but who have since sold their home between 6 April 2006, and 5 April 2008, could still be able to claim some capital gains tax back, due to the fact that a furnished holiday let is considered a commercial asset.

The HMRC will abolish all tax relief on UK and other EEA ‘furnished holiday lettings’ from April 2010.

See Also:   HM Revenue & Customs, Landlord issues, Marc Da-Silva, Overseas property investment news, Tax