Government consults on furnished holiday lettings tax rules

The Government has just published a consultation paper on proposals to change the tax rules for furnished holiday lets so they meet EU legal requirements in a fiscally responsible way.

The proposed changes to the special tax rules for furnished holiday lettings include;

• increasing the number of days for which a property must be available to let from 140 to 210 days each year;

• increasing the number of days for which a property is actually let to the public from 70 days to 105 days during a year;

• the proposals also restrict the use of loss relief from furnished holiday lettings so it can only be set against certain income

Theft & burglary questions to ask your holiday home insurer

The Summer holidays are upon us and it’s a time when many of you will be off to visit your holiday homes or managing hectic changeovers at your holiday rental.

Although it’s likely that holiday home insurance won’t be a foremost concern during this period, it’s essential that you are aware of some areas which may leave you at risk.

Our experience at Schofields is that unfortunately during the summer months, theft and burglaries increase at holiday homes – as both home owners and holiday makers arrive with an array of expensive gadgets, jewellery and money.

Although many of us have a perception that the idyllic rural locations where our holiday homes are located are virtually… read the rest of “Theft & burglary questions to ask your holiday home insurer” >>

Recap of holiday home news: 23 July 2010

It’s time once again for our holiday home and holiday letting news round-up, the format has changed but the content is as useful as always…

The summer holidays are traditionally a period when overseas property sales increase, as those with dreams of owning their own place in the sun travel abroad.

However, buying overseas can be problematic and those buying abroad often get carried away in the moment. Before you sign on the dotted line, follow these 10 golden rules to avoid your overseas dream turning into a nightmare.

But how much should you pay for an overseas holiday home? which are the best value sun spots? Help is available following research by… read the rest of “Recap of holiday home news: 23 July 2010” >>

Home insurance concerns following IPT rise

The government’s recent decision in the emergency budget to raise the lower rate of IPT (insurance premium tax) by 1% to 6% from 4th January 2011 has caused more than a few raised eyebrows in the insurance industry. Some professionals are concerned about the effect this may have on people taking out home insurance, considering it’s estimated that 1 in 4 households already forgo contents insurance.

The deficit
Given the current national deficit, comparatively few people seem to be questioning the need for some forms of belt-tightening going forward or that the government needs to raise more income.

However, some are pointing out that insurance increases must be seen in the context of VAT also… read the rest of “Home insurance concerns following IPT rise” >>

Does overseas home insurance cover mould?

As the summer holidays arrive, many overseas holiday home owners will be off to their properties to relax and unwind. Although some of you regularly visit your holiday homes, many only visit when the temperature rises – leaving the property locked up over winter.

Parts of Europe have experienced a substantial amount of rain over the winter – especially France, Spain and Portugal. This has resulted in high levels of humidity in the air. Consequently we receive calls from customers who have discovered mould/mildew on walls and furnishings: chairs, sofa, curtains, cushions and beds asking if they can claim on their overseas property insurance.

Unfortunately home insurance doesn’t cover mould or damage caused by climatic or atmospheric conditions. Therefore… read the rest of “Does overseas home insurance cover mould?” >>

Budget news for holiday lets & second homes

Here is a roundup of the 2010 budget and how the tax changes affect owners of furnished holiday lets & second homes…

Furnished holiday lets

As expected, the withdrawal of the furnished holiday letting rules on 6 April 2010 has been cancelled. For the tax year 2010-11 the legislation continues as before, and owners of furnished holiday lets will continue to enjoy generous tax breaks.

One of the main tax advantages of owning a furnished holiday let is that owners can offset any operating losses (and expenses such as holiday let insurance) against other income, such as employment income. There are also capital allowances, starting at 40 per cent, on expenses to the property… read the rest of “Budget news for holiday lets & second homes ” >>

How to book your holiday securely online

July and August are always peak periods for holiday bookings as thousands book last minute summer getaways. Get Safe Online, a government-backed campaign developed in collaboration with ABTA and The Travel Association are warning holidaymakers about following some simple online fraud prevention measures as they search for holiday bargains.

According to their research, one in three internet users fail to authenticate the travel provider they were booking a holiday with and one in five do not check the web page is secure when entering payment details.

Holiday rental frauds

Although relatively few and far between in comparison to the thousands of holidays booked direct with villa owners each year – holiday rental scams do exist… read the rest of “How to book your holiday securely online” >>