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July 19, 2015 at 4:29 am #261084sasha
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sir please help me out.
I did not understand the some qualifying conditions of furnished holiday lettings.
1.accommodation is available for not less than 210 days a year and it must be let for at least 105 days a year. sir, what is the difference between these two conditions?
2. In 105 days, long-term occupations are excluded.what does it actually mean? sir can you please clarify me with examples.
3.sir, in allowable deduction there is one thing i did not understand. relief is available for any expenditure before letting commenced, under the normal pre-trading expenditure rules. what does this mean sirJuly 19, 2015 at 5:05 am #261085sasha
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These offer a variety of products some of which are tax free, namely:
National Savings Certifcates
However, some National Savings & Investments (NS&I) products are taxable, namely:
NS&I Easy Access account / NS&I Direct Saver Account
NS&I Investments accounts
The income is received gross without deduction of tax at source.
sir, in 4th line it is stated some products are taxable. but, in last line u have stated it is received gross without deduction of tax at source. if it is taxable, are not we supposed to receive net income?July 28, 2015 at 9:30 am #262593Tax Tutor
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Your first query about Furnished Holiday Lettings (FHL):
When an individual has a property that they wish to let out for holiday lettings that does not guarantee that customers may be found to rent the property.The property must therefore be AVAILABLE for letting means that you were advertising for guests to stay in the property for a period of at least 210 days and that you ACTUALLY had guests in the property for at least 105 days.
If for example the taxpayer occupies the property for half the year then it could not possibly be available for letting for 210 days so would fail the FHL test.
Long term occupation is defined on page 21, section 3(f) of the OT notes. If 3 individuals each occupied the property for 60 days in the year then each occupation would be more than 31 consecutive days and the total would exceed 155 hence the property would NOT be a FHL.
In respect of your second query we distinguish National Savings income from normal bank interest as it does NOT have income tax deducted at source. We then divide it into 2 clearly stated categories of that income which is EXEMPT from tax and that which IS TAXABLE but is received gross by the taxpayer and must therefore be included in the income tax computation but has no tax credit that attaches to it.
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