Tax relief available for overseas holiday homes

British investors making money transfers to fund mortgages for overseas holiday homes may benefit from tax relief, it has emerged.

Property rental website holidaylettings.co.uk recently explained that for several years owners of UK-based furnished rentals are eligible for discounts.

Kate Stinchcombe, spokesperson for the portal, pointed out that if holiday home income is less than mortgage payments paid on the property, Britons can claim back the difference via their personal tax bill.

This system is currently being extended to include homes in the European Economic Area until next April, which may interest those making international payments to mortgages.

"The government has opened it up to anyone UK-based with a home in the EEA until April 5th 2010 and then thereafter they're withdrawing it completely," said Ms Stinchcombe.

"It only works if you are trying to make a profit but you actually make a loss. It's all about offsetting your losses."

Click here to make an International Money Transfer.

By John Mills.