dayglo Posted December 17, 2009 Report Share Posted December 17, 2009 My friend has a second property that they let out for holidays, which is actually loss making. In the past, they managed to obtain tax breaks on this. How will the recent pre budget report or current tax laws affect this. Link to comment Share on other sites More sharing options...
Ray Coman Posted December 17, 2009 Report Share Posted December 17, 2009 My friend has a second property that they let out for holidays, which is actually loss making. In the past, they managed to obtain tax breaks on this. How will the recent pre budget report or current tax laws affect this. Link to comment Share on other sites More sharing options...
Ray Coman Posted December 17, 2009 Report Share Posted December 17, 2009 Under the existing rules, a loss on a furnished holiday letting may be used to reduce any taxable income in the same year. However, from 6 April 2010, the loss can only be set against other property income in the same year, with any excess loss carried forward for offset against future net property income. This will be a set back for property owners such as you, who have previously used the loss to reduce your overall income subject to tax. If you would like to look at the tax planning options or you need more help in this area, then please get in touch. Link to comment Share on other sites More sharing options...
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