holiday let tax situation

[djburns]

Hello everyone,

I'm considering buying a holiday home in France and need some advice on tax etc.

When I looked at doing this in the UK I could run the property as a business putting interest, running costs, advertising etc against letting income  and if I made a "loss" then I could put it against my income tax. Capital expenditure was not covered and as long as the property was available for a certain number of weeks and actually let for so many weeks then the tax man would be happy.

So how would this work for a french property? I am a UK resident for now, presumably most of my potential clients would be from UK, paying me in the UK.

I'm sure this must be a common setup but I havn't found any answers yet!

Any thoughts?

regards

John Burnside

[Porth]

Please do not believe that if you make a 'tax loss' on renting your French property that the 'loss' can be set against your PAYE income and thus you will pay less tax on your 'day job'

 

Not so the letting side stands alone and indeed if you have a benefit from using the house as in say a company car then you must declare that portion of the benefit. Any loss is carried forward against future income from the letting process.

 

That at least is my advice from my Accountant.  He may be wrong!

 

regards

[djburns]

I'm self employed and my previous advice was on furnished holiday lets in the UK. I will have to see if my accountant has a "french specialist"! I should have known things wouldn't be that simple.

cheers