Our briefing provides a useful summary of the tax treatment of Furnished Holiday Lettings (FHL) now that various changes are finally law in Finance Act 2011. With all the chopping and changing of proposals over the last couple of years, we summarise exactly what the changes are, when they come into effect and the potential impact these changes may have. We have specifically covered: Eligibility criteria for FHL in 2011/12 and 2012/13; Loss relief developments for 2011/12; Capital allowances versus Wear and Tear; Entrepreneurs’ Relief and Business Property Relief. Read our fact sheet FHL factsheet
As 2010 has been an unprecedented year with the publication of three Finance Bills, unsurprisingly our winter newsletter concentrates on tax issues.
Following an announcement issued in October, our front cover focuses on the restrictions relating to tax relief on pension contributions and the bad news that some high earners could find themselves with an additional tax charge.
If you are entitled to Working Tax or Family Tax Credits, from April 2011 the rules are set to change and we have produced a summary to keep you up to date with the current position. We have also included a simple overview of R&D tax credits. Whilst the rules are complicated the rewards can be very valuable to qualifying companies.
Furnished Holiday Lettings have been a hot topic since the Labour government announced proposed changes. Whilst the legislation is yet to go through, the coalition government has published new proposals for the next tax year. If this legislation is likely to affect you please read our update.
The government is also looking to reform the PAYE system. Whilst no decisions have been taken our article ‘The Future of PAYE’ is an interesting insight into how HMRC view the future. Rules on employer provided cars are also set to change so if you are thinking of changing your car, our article ‘Reducing tax emissions’ may help you decide what to buy next!
‘Extracting profits wisely’ reviews the many options available to extract profits from a company and how to get the best tax deal!
Please contact us if you have any questions regarding any of the articles or tax planning tips we have included in our newsletter or if you would like further information on a topic we haven’t covered. Your views are always important to us and we would welcome any feedback you could give us.
A PDF version of the Winter 2010 Newsletter can be downloaded her Winter 2010 Newsletter
Our Spring 2010 newsletter including:
Capital losses
PAYE penalties for late payment
The provision of a phone for business
Facilitating Funding
The tax treatment of Furnished Holiday Lettings (FHL) has been advantageous for many years but the rules are set to end in April 2010.
Salary sacrifice
Download a PDF version of Spring 2010 newsletter