Where Taxpayers and Advisers Meet

Taxation on overseas residential furnished letting

quigs
Posts: 2
Joined: Fri Feb 05, 2010 10:43 pm

Taxation on overseas residential furnished letting

Postby quigs » Fri Feb 05, 2010 11:10 pm

Hi,

I would be grateful for some assistance in the following matter:

I live in the UK and have an apartment overseas that I advertise on one of the more popular advertising websites, however the no. of bookings taken in the last financial year was way less than the 10 weeks minimum required to class the property as a overseas holiday let.
By the way, this is my first year of submitting a tax return.
I've been told that I can't claim for any purchases made of furniture or equipment and when I file online the loss calculation is carried over to the following tax year leaving me with a fairly large amount of tax to owe the revenue.

The wear and tear allowance comes to next to nothing so there is no point going down that route.

Is there any way of offsetting some of the loss to cancel out the charges owed for the '08-09 tax year rather than carrying all of it over to the '09-'10 tax year?

Any assistance in this matter would be much appreciated.

Kind Regards,

Peter D
Posts: 10116
Joined: Wed Aug 06, 2008 3:37 pm

Re: Taxation on overseas residential furnished letting

Postby Peter D » Sat Feb 06, 2010 10:15 am

You have lost me, you state "when I file online the loss calculation is carried " then you say "leaving me with a fairly large amount of tax to owe the revenue.". You do not pay tax on a loss. Please explain. Regards Peter

quigs
Posts: 2
Joined: Fri Feb 05, 2010 10:43 pm

Re: Taxation on overseas residential furnished letting

Postby quigs » Sat Feb 06, 2010 11:53 am

Hi Peter,

Thanks for the response.
To explain, I have losses that are carried over to '09-'10 tax year. The point that I am trying to make is that having completing the self assessment online tax return I owe the revenue a certain amount of money in income tax. My question therefore is is there any way of offsetting some of the losses (carried forward to next year) against the tax bill that I have to pay for the '08-'09 tax year. It seems that there is not.

Kind Regards,

Peter D
Posts: 10116
Joined: Wed Aug 06, 2008 3:37 pm

Re: Taxation on overseas residential furnished letting

Postby Peter D » Sat Feb 06, 2010 1:11 pm

Still not clear. You say you have losses carried forward to FY 09/10 but you owe tax for FY 08/09. Are your mixing up rental income and PAYE income. Regards Peter

maths
Posts: 5165
Joined: Wed Aug 06, 2008 3:25 pm

Re: Taxation on overseas residential furnished letting

Postby maths » Sat Feb 06, 2010 6:21 pm

If the losses arise for the tax year 08/09 and relate to non-UK property they can only be carried forward for offset against profits therefrom ie they cannot be offset against other 08/09 income.


Return to “Property Taxation”

cron