Is anyone else concerned about the tax changes?

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harcourtv57
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Is anyone else concerned about the tax changes?

Post by harcourtv57 »

Is anyone else concerned about the tax changes for owners of holiday lets, which are to come in next year? I am still trying to get my head round what it will mean for us, but it seems that changes which were aimed at second home owners, rather than holiday accommodation run as a business, will affect the latter as well as the former. This could have an effect on the UK tourism industry as a whole, which is very shortsighted of the government in my opinion . . .
Hells Bells
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Post by Hells Bells »

As a result of the changes, I will benefit until next April, and I suppose I may get back some tax as a result if I can be bothered to do the necessary claiming. I wondered when I first started filling in tax returns for the apartment if I was being treated unfairly because my property in France, and wished to get the same tax reliefs as a UK second home owner. However, I would rather the decision had gone the other way and we were getting the same benefits permanently.
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Windy
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Post by Windy »

Yes - I'm concerend - it seems that Gordon and his mates have no understanding that property is a relatively fixed asset and that decisions and plans are necessarily made in the light of existing legislation, and changes like this can have a severe and almost unavoidable impact.

Now if we could just "flip" residences like they can abd avoid stamp duty altogether ...... ????
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Big Sis..
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Post by Big Sis.. »

Now if we could just "flip" residences like they can abd avoid stamp duty altogether ...... ????
:wink: :roll: :D
Christine Kenyon
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Post by Christine Kenyon »

Yes, very concerned. Our accountant sent through a summary of the changes this week.

What intrigues me is that the changes are needed because we're out of kilter with Euro law, but if you are a Brit with a property in Europe it doesn't apply to the Euro property. Is this to spare all the MPs with second/third/fourth homes in Tuscany and the south of France???? :shock:
Hells Bells
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Post by Hells Bells »

Don't these changes mean that Uk owners will be treated in exactly the same way as Uk based European owners are now? Although we will be able to benefit from the Uk owners tax regime until next year, after that those benefits will be taken away from everyone, putting us all on an equal footing.
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Windy
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Post by Windy »

Yes I think that's right.

Our MPs are justifiably concerned that nobody should benefit from having more than one residence.

er hang on......
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Post by Christine Kenyon »

As I understand it, you're nearly right, Helen! We won't be able to claim costs against income on our UK properties, but if you are UK based and have a property in Europe, you will be able to claim. Really makes sense, eh?! I shall just have to try and argue that Cumbria is really a sub-region of Umbria, then I'll be OK :wink: .
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Post by Hells Bells »

As I understood it, I will only be able to claim against my income until the current law is repealed in 2010, and you will be able to do so until then too.
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Windy
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Post by Windy »

That's my understanding too.

I think you can claim expenses, capital allowances and favourable CGT treatment until next year and then the FHL treatment all stops and we get treated like ordinary rental landlords.
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Post by Christine Kenyon »

So if you're planning any major work on your property, get it done soonish!
harcourtv57
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Post by harcourtv57 »

Our MPs are justifiably concerned that nobody should benefit from having more than one residence.

er hang on......
That made me smile Windy :)

But we are not just landlords we are businesses and my understanding was that 'ordinary' rentals are not treated as a business whereas holiday lettings always were. As if its not hard enough at the moment anyway.

We made a small profit last year, up until then we were making a loss or breaking even but am beginning to wonder if all this hard work (we both work full time in other jobs as well) will be worth it.

I have read that the Minister for Tourism was not consulted before the changes were brought in and that MPs for Devon and Cornwall are going to lobby as it will have a big impact on businesses in their areas.
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Windy
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Post by Windy »

But we are not just landlords we are businesses
Yes quite - how many buy to let types have to find new tenants twice a week!

I wrote to my MP Michael Jack and go this response
"I have not yet been able to examine the repeal of the Furnished Holiday Let legislation to which you refer, Parliament has yet to debate the legislation arising from the budget which might present an opportunity to look further at the measure, I will, however, put in train further enquiries about this matter both with the treasury and our own front bench team"
Given his constituency includes Lytham and St Annes imagine I may not have been the only person to raise this with him.

I am looking forward to hearing what he has done about this once he has "the benefit of their response"

I would strongly urge anyone else who is concerned here to contact their own MP.
harcourtv57
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Post by harcourtv57 »

Thats very interesting Windy, as I was intending to write a letter also. I will be interested to hear the response
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apexblue
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Post by apexblue »

http://news.bbc.co.uk/1/hi/business/8013022.stm

and

Winter Rule is gathering evidence about the potential impact of the proposed tax changes in order to prepare a briefing paper for Treasury officials and Ministers. If you think your business will be affected or would like to add your voice to the campaign please contact John Endacott at Winter Rule by emailing taxcampaign@winterrule.co.uk
Last edited by apexblue on Tue May 19, 2009 9:09 pm, edited 1 time in total.
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