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UK TAX ALLOWANCES
(Furnished-holiday-let tax saving)
Following the April 2009 Budget the tax advantages of Furnished Holiday Let (FHL) status have been extended to cover properties within the European Economic Area (EEA). There is only a limited time period to take advantage of this opportunity so owners must act swiftly. (In 2011, the majority of benefits shall be permanently withdrawn).
Provided you meet the following criteria you are potentially eligible for a tax rebate:
- That your FHL is situated inside the EEA, and
- That your FHL is available for commercial let out, and
- That you are a UK taxpayer
More precisely, the requirements for eligibility are that:
- The property has to be furnished-holiday-let in the EU country
- The purchase price has to be in excess of 150.000 GBP
- The owner has to be a UK tax payer
- The property has to be let out for more than 70 days per year
Generally, we find approximately 25% of the purchase price of the property in claimable capital allowances.
NEW TAX ON REAL ESTATE FOR 2010.
VAT: new properties.With effective date starting July 1, 2010, the reduced rate increased from 7% to 8% for off-plan sales.
TRANSFER TAX: resales.With effective date starting March 18, 2010 and only for properties located within the Andalusian Government jurisdiction, an 8% tax rate shall be applied to all real estate transfers for properties of value in excess of 400,000.00 € or for garages and parking spots (other than house parking and for a maximum of two parking spots) with value in excess of 30,000.00 €.
1ST OCCUPATION LICENCE
Royal Decree 60/2010 issued by the Andalusian Government, dated April 7, 2010.
Article 27: Requirements for filing and registering new constructions: … in order to grant the title deed of the certificate of completed building works for a new construction, and for its registration before the Local Land Registry, it is expressly required that the 1st occupancy licence (certificate of habitability) has been previously furnished.