Furnished holiday lettings

As we have discussed in previous issues of Tax Matters, our tax e-newsletter, the tax benefits afforded to those who let furnished holiday accommodation will end on 5 April 2010.  These benefits included:

  • income treated as pensionable earnings
  • income tax sideways loss relief
  • capital allowances for new expenditure
  • capital gains tax entrepreneurs' relief
  • business assets roll-over relief
  • relief for gifts of business assets
  • exemptions for disposals of shares by companies with a substantial shareholding.

There is still time before 5 April 2010 to take advantage of some of these reliefs, particularly in the context of pension contributions and expenditure qualifying for capital allowances.

Before the reliefs disappear, you might consider how they can be used to pass the property to your children or to a trust where you may be able to retain the income.  There are a number of pitfalls so professional advice is essential.

If you are considering transferring your furnished holiday letting or want more information about the reliefs available to you, please contact your usual Littlejohn tax adviser or email tax@littlejohnllp.com

 

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Year End Strategies 2009/10

Disclaimer:
This guide is prepared as a general guide only. No responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication can be accepted by the author or publisher. Always seek professional advice before acting.