Posts Tagged ‘insurane’
Holiday Home Owners Hit By New Tax Laws
Holiday home owners who have their holiday homes here in the UK are expected to be hit by a new stealth tax at the beginning of the new tax year. 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. The home also has to actually be rented for a minimum of 70 out of the 140 days. I wouldn’t be surprised if we saw some holiday home owners only offering their house for 130 days a year.
The reason why these taxes will be coming in is because, according to the Treasury, the current ones 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 tax laws will mean that holiday home owners here in the UK are classed as investors, making them applicable to more taxes.
Although this isn’t good news for holiday home owners, it is good news for the Government. With over 60,000 UK holiday home owners being affected by the new stealth taxes, the Government looks to make a £20 million income. Despite the Government being able to claim an extra £20 million each year, the changes could have a worse effect than first anticipated.
This new stealth tax won’t come as good news for holiday home owners. Many already have to pay high amounts for essentials like maintenance and holiday cottage insurance. Now as a result of the taxes, home owners are being charged more, therefore making less income and resulting in some holiday homes having to close down. According to tourism experts, the results of the new stealth taxes could end up costing the tourism industry £200 million. Not only will the tourist industry lose money because of less tourists finding places to stay, but jobs will also be lost due to so many closing holiday homes. Yet more bad news for the so called recovering recession.
If you are after insurance for holiday homes based in the UK, or just overseas property insurance for your holiday home abroad, Schofields is the site to visit.