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Article Date:	07/06/2009
Article Title:	Do you let out an overseas property located in the EEA?
If you let out a furnished holiday property overseas then an announcement in the latest Budget may affect you. You could be due a repayment of income tax but you need to act fast. The furnished holiday letting scheme is to be extended to properties in the European Economic Area (EEA) (previously it was thought that the property had to be in the United Kingdom). However,the scheme, and its advantageous tax treatments, will be removed completely from April 2010. Unlike general property rental businesses, FHL are treated as a trade for certain taxation purposes, which is generally more advantageous in terms of loss and capital gains tax reliefs. It may be worthwhile making claims for FHL treatment for properties in the EEA including those for which tax returns have already been submitted. HMRC have indicated that late claims and amendments will be accepted in relation to this matter. The first deadline is 31 July 2009. If you believe you may have or have had a property which qualifies for FHL treatment, then contact us as soon as possible to see if you may be due a refund of tax.