Housekeeper in Furnished Holiday letting - cheap accomodation

Housekeeper in Furnished Holiday letting -...

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I have a client who has an overseas let property which is qualifying as furnished letting, so a trade. 

He engages a housekeeper, who lives in another overseas property owned by the client.

The housekeeper lives cheaply at less than half the market rent, such that the rental property(his only overseas one) will make a loss.

Ordinarily the loss would be ringfenced as overseas and not much good to anyone, but given the nature of the connection to the trade can anyone suggest a way of claiming relief against the (profitable) holiday let?

Ie could we impute a market rate of rent as a discount from the notional salary, in the FHL and then declare this in full for the residential let property?

Clearly this would require contracts of employment in the overseas country to reflect this (and subject to local tax laws) but it can be sorted. 

Just trying to think this one through for now.

Feel free to be rude, I know certain people enjoy that!

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By Portia Nina Levin
02nd May 2015 10:53

(No subject)

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By ireallyshouldknowthisbut
13th Feb 2015 17:09

Portia,

I was hoping you might be around!

Looks like I am a complete [***] then and quite happy to be one in this case, it is not even in the EEA. 

Reading the first page of my book "to qualify as a FHL the accommodation must be in the UK or EEA"  Doh. 

 

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