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Tax Tip of the Month
Property Tax
Budget Report
Talking Technical
How can a landlord get a 10% tax rate?
Furnished holiday lettings meeting qualifying criteria are favourably treated for tax purposes, in that they are regarded as a business even though they are basically an investment. This means that most of the usual CGT reliefs for business assets may be claimed, in particular a 10% CGT rate. Profits will be computed on the normal business basis with full relief being given for business expenditure, including interest. Loss relief will also be available, so losses can be set against other income and capital allowances can be claimed in respect of certain capital expenditure.
