There are many savvy investors that decided to take advantage of cheaper properties during the time when the price of similar properties in the United Kingdom (UK). Increased harmonisation between the UK and the rest of Europe has now resulted in residents of the UK now being able to claim tax relief for furnished holiday properties which are rented out in other European Union?
The following are some of the tax relief scenarios that could be applied to UK property owners:
Setting losses on the let property against other UK income
Capital allowances on equipment used in the property
Capital gains relief on selling the property
Entrepreneurs’ relief for disposals made after 5 April 2008
Business asset taper relief for disposals made before 6 April 2008
Business property relief for inheritance tax
It may also be possible that some tax relief could be applied retrospectively for a number of previous tax years. However in order to qualify you will need to demonstrate that all of the following was applicable for the relevant year:
The letting business was run on a commercial basis for profits
The property was available to let as furnished short-term holiday accommodation for at least 140 days per year
It was actually let for these short-term periods for at least 70 days per year
Long-term lettings, which exceed 31 consecutive days let to the same person, did not take up more than 155 days per year
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