Tax break
Any British people who are lucky enough to own a holiday home in Spain whould have paid the UK government tax on the income made through lettings over the past five years. However, the recent budget announcement in the UK included the retrospective application of a tax break but time is running out - owners only have until 31 July.
In order for a property to qualify it must meet certain conditions. These include being situated in the EEA and the business being a commercial venture with a view to making a profit. The property must be available for commercial letting as holiday accommodation for a minimum of 140 days per UK tax year and let for at least 70 days. Lets of over 31 days to the same person cannot be included.
This will be a short-term benefit running until 2010.
For more information visit: http://www.hmrc.gov.uk/budget2009/furnished-hol-lets-1015.pdf
