Tax blow to North Devon holiday lets
FOLLOWING the April Budget, tax benefits currently enjoyed by owners of holiday cottages and other holiday letting properties are to be withdrawn next year and this could be a double blow to the North Devon economy, according to a leading tax expert. Chr
FOLLOWING the April Budget, tax benefits currently enjoyed by owners of holiday cottages and other holiday letting properties are to be withdrawn next year and this could be a double blow to the North Devon economy, according to a leading tax expert.
Chris Bowker of Barnstaple-based Simpkins Edwards said: "The Furnished Holiday Lettings (FHL) rules currently allow owners to offset any trading losses if for example they have a poor season or high repair costs, against any other income they may have. There are also Capital Gains Tax (CGT) and capital allowance advantages to be gained from the current scheme."
"Owners may be significantly disadvantaged when the changes take place next year and it may lead to some withdrawing from this particular tourism sector to seek alternative investments. This would be a real blow for the regional economy with some long term negative outcomes."
Mr Bowker said there were steps that could be taken now that could mitigate the new taxation burden and encourage owners to remain in the sector.
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"There is a window until 6 April 2010 when these advantages and reliefs are still available so there is an opportunity of reviewing the tax and commercial position of owners of holiday lettings," he said.
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