
		HOME \| Membership Websites \| SMM Solutions \| CRM Solutions \| Online Training Systems \| Publishing \| Clients \| Guarantee \| Log In

UK Holiday Letting And Tax

Submitted by Collette Royal | RSS Feed | Add Comment | Bookmark Me!

This article is meant as a guide only. Advice should be taken from a qualified person.

Letting a fully furnished holiday home in the UK may mean the income made is treated differently than other rental income. Holiday lets are considered a business, where as other property letting income is classed as investment income.

The are some tax incentives for holiday lets, but your accommodation must comply with inland revenue rules, referred to as “QUALIFYING TESTS” which are:

* Based in the UK.

* Furnished rental accommodation.

* Available for holiday letting to the public for at least 140 days a year.

* Actually let as a holiday let for at least 70 days a year (and
these must be commercial lets, not at cheap rates to friends and
family).

* Your occupier cannot stay for more than 31 days in any 7 month period.

* Lets must be at the full market value. This means letting your
cottage to family for £2 a week will not count.

And holiday lets must be (both):

* Short term lets of not more than 31 days.

* The only lets over a period of at least seven months.

Your income from you holiday let is subject to income tax, but you can off-set expenses for example:

* Repairs and maintenance.

* Decorating.

* Heating & lighting.

* Legal and letting agent's fees.

* Management fees and cleaning costs.

* Insurance.

* Mortgage interest payments.

If you make a loss, you can off-set this against your other income to reduce your tax bill. You can avoid paying capital gains tax on the sale of the property if you roll-over the income within 3 years to another holiday letting property.

There are other advantages, and as stated before, take professional advice before heading into holiday letting. There are many mortgages available for the buy to let market and spending some time with a well regarded mortgage advisor would be in your best interest


Contact Us Support and Sales

LinkedIn Recommendation:

Catalina Mondello - Computer Systems Analyst at Widget Marketing - I just attended one of Teo's free eWorkshops last week and decided to hire him for my project on the spot. He had my site up and running in less than a week and pointed me to the videos on eWorkshopCourses.com to help me through the social media stuff myself. I am looking forward to doing more work with him. He's a powerhouse! - March 17, 2012, Catalina was Teo's client

Featured [mortgage] Articles:

Net-Teams - Helping Businesses Prosper With Custom CRM, SMM and Online Training - Net-Teams, Inc. (NTI) is a technology and marketing firm and offers access to a core set of system t...

The Benefits Of A Membership Program For Your Website - Building membership through your website allows you to automate the acquisition of prospects and cus...

eWorkshop Hosting - The More Effective Way to Build Your Business with Online Ed - More and more companies are using eWorkshops to reach out to customers, prospects and employees. An ...

eWorkshop Publishing From Net-Teams - As many people are discovering, self-publishing is a time consuming venture, which takes time away f...

What is Social Media Management And Why Is It So Critical? - Whether or not you have a customer relationship management (CRM) system in place, there is one key r...