Friday, 28 January 2011

Furnished Holiday Let Tax Saving

  • Good news for some property owners

  • It’s a one-off opportunity NOT an annual allowance

  • No upfront fees so its worth investigating

Regular readers of ‘Financial Pages in Spain’ will know that most of my articles are aimed at British and Irish expats in Spain. This article is for the benefit of UK Taxpayers with furnished holiday let property anywhere in the EU including Spain.

In summary, to benefit you need to answer ‘yes’ to the following four criteria;

  • Is the owner a UK taxpayer?
  • Was the purchase price in excess of £150,000?
  • Is the property a furnished holiday let in the UK or any part of the EU?
  • Is the property let out for more than 70 days a year and available for letting more than 140 days per annum?

Anyone who can answer ‘yes’ to all of these questions may be able to save thousands of pounds in tax. Start the ‘ball rolling’ by sending me brief details by email

The Tax Office (HMRC) of course does not advertise that the entitlement is available but every person who qualifies will almost certainly have overpaid tax. It has been estimated that under 2% of UK taxpayers who own furnished holiday let property have made a claim. So, Holiday let owners, 98% of you have a claim to make! But it has to be a very detailed, pre-determined report in the form of a survey.

This benefit is given as either a tax rebate or often a reduction in future tax payable.

Whilst accountants will do everything possible to claim benefits for their clients, this is a specialist field. The promoters, who provide access to this entitlement, must conduct a very rigorous survey of the property, to standards set by HMRC and presented in a specified format. As the work involved is so detailed and time consuming, you must not just answer the questions above as ‘yes’, there is another filter where the company will discuss by phone or in person, the finest detail to ensure compliance.

Because of this diligence and expertise the company has a 100% success record on cases submitted to HMRC. If you feel you meet the criteria, please email details to me, which will be in total confidence.

The following step by step guide shows how the scheme works and where you fit into it.

There are five steps;

  1. There is a telephone or face to face meeting with the scheme provider to establish that a claim would be valid. So much detail at this step can save lots of time in the process.
  2. The property is surveyed, in great detail, taking lots of photographs (the record number is 400) as these form part of the HMRC method and standards required.
  3. The claim will include hundreds of items within the ‘intrinsic fabric’ of the property, for everything, including the kitchen sink!
  4. The norm is to find capital allowances equivalent to 25% of the property value which can then form part of the claim
  5. When the allowances are calculated and identified in the HMRC format, a Report is completed within a two week time-frame. This is sent to the UK taxpaying property owner for approval before the claim is made to HMRC.

My apologies, there is one step I have forgotten. Before step 1. above please send me details of your circumstances and potential claim.  This means that I can put you in touch with the company promoting the scheme, without delay. Send your details to me by email as soon as possible.

If you think you qualify, there is no point in waiting. There are no upfront fees so it is worth investigating.

Wednesday, 19 January 2011

Expats and property owners in Spain -
No plan for Spanish Inheritance Tax?

I recommend that you take advantage of a FREE proposal which will tell you the extent of any liability you might have. It commits you to nothing but does put you in the picture.

  • Spanish Inheritance Tax (ISD) is NOT the same as UK IHT

  • A widow’s sad story

  • Why didn’t your lawyer tell you?

This tax is totally different from UK IHT, in fact so different that it is not covered by any Double Tax Treaty between UK and Spain. This article covers anybody who has assets in Spain whether they are resident or non-resident in Spain.

I suspect that it affects everyone who reads this Blog and each of you know many, many people who are also trapped by its implications.

But there are solutions

A widows story
Mrs Holt wrote to me, about a sudden demand for €8,800 plus other costs to transfer ownership into her name following the tragic early and unexpected death of her husband. For a modest second home in Alicante Province, transferring their holiday home will cost more than €10,000. In addition to the ISD there are the Notary costs, land register charge and her own solicitor’s costs.

‘The property I assumed would be signed over to myself, however, after asking our solicitor in Spain to confirm the costs they have included an 8,800 euro inheritance tax.’ She told me. ‘At his time of death we were both working and living full time in the UK and hold residence of the UK.’ She added.

Mr & Mrs Holt bought their dream home in 2002 but the solicitor who handled their purchase never mentioned Spanish ISD. I’m not sure why but they never seem to.

As if coping with a tragic death is not enough, there is a highly significant tax as well!

Yet there are UK solutions which are using the advantage of EU treaties, yet complying with Spanish Law. Rather than tell you more here, I suggest that you look at your own situation and get a free quotation based individually on your own circumstances.

 As always, you can also contact me by sending an email


Thursday, 13 January 2011

Why won't they disclose commission?

If any firm of International financial advisers wants to explain this I will give them an open forum. Anyone with a story to tell in confidence can tell me by email

·        FSA rules since 1993

·        Commission disclosed in UK but NOT Spain

·        What do they have to hide?

It continues to perplex me, I can’t understand this and quite frankly I think it is wrong!

They advertise in English speaking newspapers, they tell us they are authorised and regulated by the FSA in the UK but they don’t disclose commission which has been an FSA rule since 1993.


Well this is their chance to tell you. If any of the International Financial Advisers who are authorised and regulated by the Financial Services Authority (FSA) want to explain, I will republish their words without any alteration or redaction. So come on, you know who you are come and tell us!

But if no one takes up that option, I’ll also give that the oxygen of publicity too!

So come on guys tell us, why won’t you disclose commission?

+ + + + + +

Anyone who has anything to tell me about this or any other issue can write to me with details by email. If you want anonymity I will guarantee it.

If you work for an International Financial Adviser with a whistleblowing story to tell, I will protect my source.

Saturday, 8 January 2011

Is this QROPS misselling?

Learning from other people’s experiences is one of the key issues which arise here on my Blog. In fact my own professional experience as an IFA in UK, my own knowledge of Spain and readers experience are all equally important.

  • QROPS investment of funds

  • QNUPS might also be affected

  • Not just transferring the pension but also the investment

Here is one that might affect you or someone you know;

In-Specie transfers

I had a conversation with an Englishman, during last year, now living and working in Spain who was telling me about his Self Invested Personal Pension (SIPP). Naturally, I asked if he had considered transferring to a QROPS. He told me that he was very happy with the investment returns in his SIPP and that his ‘adviser’ had told him that it wasn’t possible to transfer the assets in his SIPP to QROPS!

This advice is wrong

Such a transfer is possible and is known as an In-Specie transfer, this is perfectly acceptable and clearly good advice where the individual is pleased with his investment performance. He has ditched the ‘adviser’. Please don’t get the wrong ‘adviser’ email me

Some advisers seem unable to distinguish between the rules and their own business model.

Could you help me, please?

This story may not affect you but does it affect people you know? Please pass it on to your circle of friends, colleagues or neighbours as you never know who may benefit. I may be able to help if you email me