Tax Changes in UK Budget Will Affect Thousands of Second Home Owners in Europe

British holiday home owners have come into focus as a potential source of revenue for the UK government Inc. After April 2010, British owners of second homes in the EU will no longer be able to write off trading losses from second homes in the EU.

A second home in Europe can be considered a "holiday" property if it is furnished, is run as a commercial business and let out for at least 70 days a year. It must also be "available for let," for at least 140 days a year.

Many UK residents have been able to offset at least part of the cost of a holiday home in this way, but will no longer be able to do so after April next year.

This is yet another pressure on the downward value of European house prices. We understand that the British gov Inc is broke, and has been aggresively pursuing UK residents with offshore bank accounts, but this is directly targeted at the middle class. Many markets that relied on British second home owners are already under pressure. French, Spanish and Eastern european property prices are already tumbling - and this is another brick in the wall.

British Gov Inc Wants Your Holiday Home