Tax Rebate for Holiday Home Owners
Updated: 14th August 2009
Tax Rebate for Holiday Home Owners
Local holiday home owners who own properties throughout Europe can claim an extra tax rebate.
But this double boost will end by April 2010 so holiday home owners are being urged to make the most of this tax break now.
Financial advisor Stephen Hill of S Hill & Co said that this new tax break to include holiday let accommodation in Europe came about from the recent budget.
“This double tax break could really benefit investors in Northern Ireland who own holiday let accommodation both here and either the Republic of Ireland or mainland Europe.”
He explained that landlords with income from furnished holiday accommodations in the UK are given various tax advantages which enable them to write off any trading losses from their second properties against their other income. And if the landlord’s expenses and interest on any mortgage are greater than the income generated by the holiday let, it can be offset or the loss carried forward and offset against future letting profits.
“The bad news is that it doesn’t apply to every holiday let. In order to be eligible the business must be commercial. The property must be available for letting as holiday accommodation for at least 140 days of a 12 month period, and has to be actually let for at least 70 days and lets must be shorter than 31 days.
“But it can be claimed for retrospectively and holiday home owners should write to Revenue & Customers to explain their situation and find out just what can be done.”
Mr Hill said that these investors can also roll over capital-gains tax (CGT) to reduce their overall tax bill and that they should seek independent financial advice as well to maximise the tax efficiencies.
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