FURNISHED HOLIDAY LETTING: THE BENEFITS
Owning a holiday let can be advantageous. Not only does it provide enjoyable holidays for your family and friends, it provides a potentially lucrative additional income. Here we explore the some of the additional benefits of becoming a Furnished Holiday Let.
Goodbye Council Tax
A self-catering accommodation which is available for short-term lettings for more than 140 days in any given year, is subject to Business Rate property tax. However, this isn’t necessarily bad news as you can claim Small Business Rate Relief, which can be up to 100% (dependent on what area you are in). Therefore, goodbye to council tax! Find out more information on Small Business Rate Relief.
Inheritance Tax
The special treatment does not extend to inheritance tax but complete relief from this tax may be available where the lettings are short term and the owner is "substantially involved" with the holidaymakers. The owner may use an agent, which the taxman suggests should be a relative or a housekeeper. However, a commercial agent such as Bournecoast may well be able to provide a restricted ongoing service if inheritance tax relief is sought in addition to the other relief's.
Please note that all details printed within these pages are for information purposes only and are not to be taken as Financial or Tax Advice. To obtain Financial Advice or Tax Advice you will need to speak the relevant specialists about your particular circumstances.