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UK Tax Break For Owners Of Spanish Holiday Homes

By David Goodall - Fri 3rd Dec 2010

Good news for some owners of Spanish property – and that's something that I haven’t said that for some time!

This article is really for the benefit of UK Taxpayers who may own a furnished holiday let property anywhere in the EU - and yes, that includes Spain.

In summary, in order that you can be in a position to benefit from this tax break, you need to be able to answer ‘yes’ to all four of the requirements listed below:

1.) Is the owner a UK taxpayer?

2.) Was the purchase price in excess of £150,000?

3.) Is the property a furnished holiday let in the UK or any part of the EU?

4.) Is the property let out for more than 70 days a year and available for letting more than 140 days per annum?

Anyone who can answer ‘yes’ to all of these questions may be able to save thousands of pounds in future tax. Why not start the ball rolling by either contacting me via my own website, or by posting any questions you may have in the comments area below?

Now that the 2010 Budget and Autumn Statement have been announced and debated, the availability is in no doubt until 5th April 2011. Since the Government is constantly looking for extra revenues I cannot be sure that it will be available in the 2011/12 Tax Year.

The Tax Office (HMRC) of course does not advertise that the entitlement is available but every person who qualifies will almost certainly have overpaid tax. It has been estimated that fewer than 2% of UK taxpayers who own furnished holiday let property have made a claim. So, Holiday let owners, 98% of you have a claim to make! But it has to be a very detailed, pre-determined report in the form of a survey.

This benefit is given as either a tax rebate or often a reduction in future tax payable.

Whilst accountants will do everything possible to claim benefits for their clients, this is a specialist field. The promoters, who provide access to this entitlement, must conduct a very rigorous survey of the property, to standards set by HMRC and presented in a specified format. As the work involved is so detailed and time consuming, you must not just answer the questions above as ‘yes’, there is another filter where the company will discuss by phone or in person, the finest detail to ensure compliance.

Because of this diligence and expertise the company has a 100% success record on cases submitted to HMRC. If you feel you meet the criteria, please send your details to me, which will be in total confidence.

The following step by step guide shows how the scheme works and where you fit into it.

There are five steps;

1.) There is a telephone or face to face meeting with the scheme provider to establish that a claim would be valid. So much detail at this step can save lots of time in the process.

2.) The property is surveyed, in great detail, taking lots of photographs (the record number is 400) as these form part of the HMRC method and standards required.

3.) The claim will include hundreds of items within the ‘intrinsic fabric’ of the property, for everything, including the kitchen sink!

4.) The norm is to find capital allowances equivalent to 25% of the property value which can then form part of the claim.

5.) When the allowances are calculated and identified in the HMRC format, a Report is completed within a two week time-frame. This is sent to the UK taxpaying property owner for approval before the claim is made to HMRC.

My apologies - there is one step I have forgotten. Before step 1. Above, you will need to send me details of your circumstances and potential claim. This means that I can put you in touch with the company promoting the scheme, without delay.

Please don’t wait until next year!

Comment on this Blog

I have been claiming this tax for the time I have owned my apartment in La Torre. You don't need anyone to fill it in for you or advise you. If you are renting your property you should be keeping decent records anyway. Read through the notes thoroughly on the HMRC website, any clarification can be sought by calling HMRC. Good luck!
La Torre1 - Sat, 18th Dec 2010

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