Has anyone taken any professional advice after the Pawson case ruling?
Just wondered as we are receiving conflicting advice from our accountant and tax advisor.
I know that EASCO are looking at this, but as our tax circumstances are rather complicated, Mr Annew and I have decided to seek further advice.
The Pawson Case
The Pawson Case
If you want to find me, Google The Barton Poughill!
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Not yet. We have two holiday cottages with the idea being that they provide us with some retirement income and then the kids inherit one each to help them get on the property ladder. But if the Pawson case is anything to go by they would have to sell one just to pay the inheritance tax. We're keeping an eye on EASCO to find out if the Pawsons manage to get together the funds for an appeal. It's made us realise that we do need to get some professional advice because our grand plan may be fundamentally flawed!
Jo
Joint owner of Baker's Cottage in Chester & Chandler's Cottage in Sidmouth
Joint owner of Baker's Cottage in Chester & Chandler's Cottage in Sidmouth
Just Bumping this as I can't believe that I (and Joanna) are the only UK owners worried about this potential barrel of worms!
I've received some advice on this potential nasty tax problem and just wondered who else has sought advice and whether they would like to share (I would be happy to share the advice I have received privately)
PM me if you'd prefer not to stick your head above parapet!
I've received some advice on this potential nasty tax problem and just wondered who else has sought advice and whether they would like to share (I would be happy to share the advice I have received privately)
PM me if you'd prefer not to stick your head above parapet!
If you want to find me, Google The Barton Poughill!
Thought about it and put it into the difficult pile! With two properties and three kids, the maths never worked anyway! I plan to keep them for as long as I'm physically able to provide retirement income, by which time I hope that something will have crawled out of this and my kids will have their lives on track, as they could be in their forties and fities by then.
As nightowl says, who's to say what the goalposts will be in a year or two let alone in decades time? That's no excuse of course, so I hope the industry as a whole or other individuals will be able to fight for the principle. Happy to support in anyway I can.
As nightowl says, who's to say what the goalposts will be in a year or two let alone in decades time? That's no excuse of course, so I hope the industry as a whole or other individuals will be able to fight for the principle. Happy to support in anyway I can.
A key question that came out of the ruling is "is a holiday being provided or just accommodation?"
In the short term, key for me is improving my written records.
I am trying to make sure I have records for all the things that we do that would signify that a holiday is being provided.
For example documenting the pre-holiday conversations I have with guests where I help them with information about the area and cottage.
I need to improve my record keeping of the work I put in to updating our brochures and the work I put in to seeing where I am spending the most on consumables.
I should probably make notes when I choose products for the cottage such as toiletries, linen. And I should make sure I have a yearly business plan that includes my strategy,target audience and objectives and tactics for the business. And show any market research I do etc....
So it is in my difficult pile too. I have a complex situation as I am non resident and residing in a non EU country.
In the short term, key for me is improving my written records.
I am trying to make sure I have records for all the things that we do that would signify that a holiday is being provided.
For example documenting the pre-holiday conversations I have with guests where I help them with information about the area and cottage.
I need to improve my record keeping of the work I put in to updating our brochures and the work I put in to seeing where I am spending the most on consumables.
I should probably make notes when I choose products for the cottage such as toiletries, linen. And I should make sure I have a yearly business plan that includes my strategy,target audience and objectives and tactics for the business. And show any market research I do etc....
So it is in my difficult pile too. I have a complex situation as I am non resident and residing in a non EU country.