Lay My Hat home page Lay My Hat Forum
The forum for holiday rental owners


 
  FAQFAQ    SearchSearch    MemberlistMemberlist   UsergroupsUsergroups    RegisterRegister  
  ProfileProfile    Log in to check your private messagesLog in to check your private messages    Log inLog in 

LMNP vs LMP from January 2020

 
Post new topic   Reply to topic    Lay My Hat Forum Index -> France
View previous topic :: View next topic  
Author Message
Martha



Joined: 16 Apr 2006
Posts: 2264
Location: Chamonix

PostPosted: Tue Feb 16, 2021 12:13 pm    Post subject: LMNP vs LMP from January 2020 Reply with quote

Hi there,
Just went to see some new accountants and they told us that a new regulation was very suddenly introduced on 1 jan 2020 so you can no longer declare as LMNP if you turn over more than 23,000 - you have to convert to LMP.

In which case we could become liable for a huge amount of capital gains tax on the big chalet if we moved into it, as it would be coming out of a business. Now, as it happens, the revenue was of course much smaller in 2020 so we think we will be able to sort this out with not too much difficulty. And of course everyone's individual circumstances are different.

But it does appear that there's a big change and a much less favourable tax regime in the future for letting a holiday rental which makes over 23,000 a year, and I wondered if any others here are affected by it and what their choices were?


https://alter-finances.com/actualites-investissement-bordeaux/2020/12/21/location-meublee---les-saisonniers-et-les-professionnels-soumis-aux-cotisations-sociales---.html
_________________
Chalet la Foret, Chamonix
Back to top
View user's profile Send private message
paolo



Joined: 17 Jun 2004
Posts: 3956
Location: Provence, France

PostPosted: Fri Feb 19, 2021 10:11 am    Post subject: Reply with quote

Hi Martha,

It also says that the rental income needs to make up more than 50% of your household income for you to be LMP. Did your accountant tell you if this is French income only or global income?
_________________
Paolo
Lay My Hat
http://www.laymyhat.com
Back to top
View user's profile Send private message Visit poster's website
Martha



Joined: 16 Apr 2006
Posts: 2264
Location: Chamonix

PostPosted: Fri Feb 19, 2021 4:11 pm    Post subject: Reply with quote

Hi Paolo! They were definite that it's French only. Our French only income is basically only the chalet, the rest is from the UK.
_________________
Chalet la Foret, Chamonix
Back to top
View user's profile Send private message
paolo



Joined: 17 Jun 2004
Posts: 3956
Location: Provence, France

PostPosted: Sat Feb 20, 2021 9:38 am    Post subject: Reply with quote

Me too, I suppose it was inevitable that they would get rid of the generous conditions for short-term rentals.
_________________
Paolo
Lay My Hat
http://www.laymyhat.com
Back to top
View user's profile Send private message Visit poster's website
Martha



Joined: 16 Apr 2006
Posts: 2264
Location: Chamonix

PostPosted: Mon Feb 22, 2021 8:39 am    Post subject: Reply with quote

That's what I was thinking...it wasn't a huge surprise but I've just not heard anyone really discussing it!
_________________
Chalet la Foret, Chamonix
Back to top
View user's profile Send private message
Display posts from previous:   
Post new topic   Reply to topic    Lay My Hat Forum Index -> France All times are GMT
Page 1 of 1

 
Jump to:  
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum


Powered by phpBB © 2001, 2005 phpBB Group