Holiday Rentals News - Budget brings good news for holiday home owners

Budget brings good news for holiday home owners

The chancellor's recent Budget announcement brought good news for holiday home owners.

According to details of the Budget announced by Gordon Brown on Wednesday, overseas holiday home owners are to benefit from lower income tax charges.

The lower charge has been made possible thanks to the chancellor's getting rid of the "benefit in kind" tax charge, the Financial Times reports.

Holiday home owners who have been paying the tax can claim a refund, thanks to the retrospective nature of the removal of the charge.

Jonathan Rice, tax partner at Deloitte, told the newspaper: "This is one piece of good news to come out of the Budget, it is unusual to have a positive retrospection from the Treasury.

"Using companies to buy properties abroad is extremely popular."

Leonie Kerswill, a tax partner at PricewaterhouseCoopers, added the charge had been a "sore point" for holiday home owners and welcomed the Budget plans to remove it.
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