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Do you rent out furnished holiday property abroad ? 26/Jun/09 (Business)

Have you picked up on the story about the change of taxation treatment of furnished holiday accommodation which seems likely to hit thousands of unsuspecting small landlords, adversely affect tourism income in the UK and potentially lead to more tax evasion?

Up to now, if you rented out furnished accommodation for holiday lets you could offset the various costs of making the property available such as mortgage interest, repairs and maintenance etc. It is still a high risk occupation because of the high cost of damage that occurs to properties during short lets.

The Government/HMRC tried to contest an EU ruling that this should apply to properties owned and let overseas and lost. The EU determined that the same rules should apply to both UK and Overseas properties.

The petulant reaction of the Treasury/HMRC has been to withdraw the relief from all – making many properties unprofitable and potentially contributing further to the slump in the housing and tourism markets.

It seems destined to hit thousands of small landlords.

For comment - go to the Residential Landlords Association who are steaming about this and many other aspects of Government policy such as HIPS

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