UK Foreign Property Investors May Be Eligible for Tax Rebate

UK citizens who have invested in a holiday home in Europe that they rent out should look at the changes in the Budget last month to see if they are eligible for a tax rebate.

Last month’s Budget included a clause that permits owners of European holiday lets to apply for tax rebates from the last five years. The clause has come around because landlords with rented UK holiday accommodation have been treated like they were trading, assuming they were complying with the Furnished Holiday Lettings rules, however Brits who own foreign holiday lets have not been viewed in the same way.

The UK Government have therefore deemed that anyone who is subject to UK capital gains tax and income tax should be treated as a trader therefore foreign property owners in the UK may be able to claim a tax rebate.

UK foreign property investors will have until April 2010 to apply for the rebate, although only tax from the past 5 years can be reclaimed.

Owners who have incurred losses from the letting of their European property since April 6, 2003, and those who have sold a European property and made a profit through the sale and have used the property for letting since April 6, 2003, may be eligible for the rebate. However in order for the property to be eligible the property must have been let for at least ten weeks per year, and must have been available to let for 140+ days.

RSS Feed for This PostPost a Comment

css.php