How does this affect you?
Now that Furnished Holiday Lettings are treated in the same way as Residential Lettings for tax purposes you need to be aware of the difference between the two tax regimes.
Three major changes are –
- Property owned jointly between spouses is split equally between the couple, unless the property is owned in unequal shares, in which case an application can be made to have the income and expenditure apportioned in line with the share of the ownership. The application cannot be backdated and so the 50:50 split would apply up to the date of the application.
- Capital Allowances can no longer be claimed for any new equipment purchased. You can only claim a deduction for the cost of replacing existing equipment.
- Profits will no longer be treated as relevant earnings for calculating the tax relief on pension contributions
If you own a Furnished Holiday Let and would like to know how the changes impact you contact us and we will be happy to guide you through the changes in relation to your individual circumstances.
