Holiday Let Owners To Lose Tax Reliefs
The new government may have reintroduced tax breaks for homeowners with furnished holiday lets following the Emergency Budget in June; however this revival appears to have a few catches…
In a recent document published by the Treasury, George Osbourne revealed plans to make accessing these tax breaks a lot tougher in order to decrease the UK’s rising deficit. Yet are these changes for the better of the property market?
Holiday lets have traditionally attracted property investors in the past because they were able to offset their mortgage costs against their personal income. Yet during this announcement it became evident that this will no longer be possible. Especially if we are to fall in line with EU law.
Initiating this change from 2011-2012, it is believed more than 25% of the existing 65,000 property owners currently providing holiday lets will no longer qualify for tax benefits. To become eligible again they will have to ensure that their property falls under the following guidelines:
- Must be available for let for a total of 210 days a year (up from 140 days)
- Must be let for at least 105 days a year (up from 70 days)
Examining these guidelines, it is highly unlikely that new property investors will be inspired into venturing into this niche…
With thousands expected to be left with no other option than to sell their property investments (to reduce their debts), supplying holidays is not as attractive as it used to be.
Related posts:
- New Tax Laws For UK Holiday Homes
- MPs Lose Overnight Claims Allowances
- What Influences A Property Owners Decision To Invest
- Property Owners Face Excessive Home Insurance Charges
- Tenant Applications Rise To 61,000
Tags: holiday lets, property investments, property investors
Leave a Reply