Holiday Home Owners to be Hit By Stealth Tax
By
UK holiday home owners, who rent their house out for a large portion of the year, are to be hit by new stealth taxes in 2010. The new stealth taxes will affect around 60,000 holiday home owners, with each being charged around £400 extra.
The new taxes will affect holiday home owners who have their home available for atleast 140 days a year. This will be good for some home owners because out of those 140 days, it has to be rented out for a minimum of 70 days before the taxes take force. By the sounds of that, I wouldn’t be surprised if we saw people offering their home for 139 days a year.
The reason why the tax is coming into play is because, according to the Treasury, the current tax rules break European laws. This is because UK holiday home owners are classed as traders which means that can benefit from reduced taxes on certain things. These new guidelines will mean that the home owners will now be classed as investors which means that will be required to pay tax.
Although these new taxes won’t be good for holiday home owners, they are good for the Government. With around 60,000 UK holiday home owners being hit by the new stealth taxes, the Government looks to make around £20 million. Despite the Government being able to claim an extra £20 million each year, the changes could have a worse effect than first anticipated.
The new stealth taxes won’t go down well for many UK holiday home owners. Most holiday home owners already have to pay high prices for essential things like maintenance and holiday cottage insurance. Now as a result of the new stealth taxes, holiday home owners won’t be making as much income and this could end up forcing some homes to close. According to analysts, these taxes could result in the tourist industry loosing £200 million each year. The tourist industry won’t just be losing money though, due to the number of holiday homes that will have to close, a number of jobs will also be lost. Yet more unwelcomed news for the recession.
If you’re looking for insurance for holiday homes based in the UK, or for overseas property insurance for your holiday home overseas, Schofields is the place to go.
Related posts:
- Using Your Free Government Grants For Home Improvement Click here to watch my video on how to make...
- Caring for your home to last Click here to watch my video on how to make...
- HUD Home Foreclosures Click here to watch my video on how to make...
- How To Sell Your Home Fast Click here to watch my video on how to make...
- Business Financial Planning Click here to watch my video on how to make...
Related posts brought to you by Yet Another Related Posts Plugin.