TAX IMPLICATIONS FOR HOLIDAY COTTAGES

Posted on 24 November 2009

In April’s Budget, the Chancellor announced changes to tax rules governing the letting of furnished holiday property. As a result of the proposed changes, operators of self-catering accommodation will face a greater tax liability from April 2010.

At present, the Furnished Holiday Lettings (FHL) rules allow owners of self-catering cottages, as long as they satisfy certain tests, to be treated as trading businesses for tax purposes. The rules were originally introduced 25 years ago to encourage expansion in the sector. However, as UK owners of similar properties elsewhere in the EU cannot qualify for this treatment, the Government has determined that the FHL rules may not be compliant with European law and, as part of the 2009 Budget, announced that they would be scrapped from April 2010.

The main fiscal consequences of this proposed change will be:-

Losses from FHLs will not be able to be set against other income
Capital Allowances will not be available.
Income from FHL will no longer be ‘relevant earnings’ for pension purposes.
The sale of the FHL business will no longer be eligible for a number of capital gains tax relief’s such as entrepreneur’s relief, roll-over relief and specific hold-over relief for business assets.

If you think these tax changes may have an impact on your business, then please contact Bowlts to discuss the options available to you.

Featured Property

WESTER BROCKLOCH STEADINGS

Rafford, Forres

A unique opportunity to acquire a set of traditional farm buildings with Full Planning Permission in place for a single residential unit, set in a peaceful location yet with easy access to local amenities.

A substantial site extending to 4.67 hectares (11.54 acres) or thereby.

Recruitment

RURAL PRACTICE CHARTERED SURVEYOR AND TRAINEE CHARTERED SURVEYOR POSITIONS

Due to an increasing workload, we are looking to expand our rural practice department. Our office is based at Pluscarden, near Elgin, Moray. We currently have a staff of 15 and our core activity is property consultancy and rural estate management.

We are currently accepting applications for both a Rural Practice Chartered Surveyor as well as a Trainee Chartered Surveyor.

The successful applicants will join our rural practice team, which consists of four fully qualified land agents. Both positions are full-time, working Monday to Friday, and salary will be negotiable depending on experience.

If you would like to apply for either position, please email your CV and covering letter to mandy@bowlts.com.

News Headlines

2023/24 GRADUATE SCHEME NOW OPEN

We are delighted to announce that our 2023/24 Rural Graduate Scheme is now open for applications. We welcome applications from graduates studyin Full Story...

PEATLAND ACTION SCHEME

The Scottish government has recently reopened the Peatland Action Scheme for applications in 2021. The Peatland Action Scheme is a multi-million po Full Story...