Do you have a holiday cottage, flat or apartment that you rent out to holidaymakers? If so, our handy ‘Holiday lettings’ guide for landlords could be very useful to you — and it could save you money. It’s packed full of useful information and tax tips that will help you to make the most of your holiday property, at the same time as keeping on the right side of the tax man.
We’ve written a section all about the tax breaks that apply to qualifying holiday lets. These include capital allowances for things you pay for when fitting out your holiday property, the tax treatment of expenses, the ability to pay pension contributions on your profits, several types of relief (some of which may affect your exposure to Capital Gains Tax) and small business rate relief.
There’s also a section in the guide that covers some of the downsides to tax on holiday lettings. These include the need to get your VAT Registration status and charges right (where applicable) and also the tax treatment of any trading losses.
Lastly, there’s a section that outlines the qualifying conditions that apply if you want to treat your property as a holiday let rather than as an ordinary rental property. That’s important because different tax rules apply to each category and you could miss out on some excellent tax breaks if you don’t get it right. For example, the holiday rental property must be fully furnished and allow for self-catering holidays. Also, the property must be available for a particular number of days per year and be rented out in a particular way. It should not be occupied by the same tenant(s) for more than a certain number of days in succession, nor for more than a certain number of days per year for that person. It’s complicated!
That’s just the tip of the iceberg! Take a look at the full guide here and learn the full story.
Tax Help for Landlords with Holiday Lettings
It goes without saying that Taxfile are here, should you need us, to guide you through the labyrinth of tax rules that apply to holiday lettings as well as to ordinary property lets. Simply call us on 0208 761 8000 to discuss your needs and we’ll be happy to help. You can alternatively send us a message or enquiry here and we’ll get back to you by return. Taxfile are tax advisers and accountants who can help with all aspects of accounting for individuals, small businesses, limited companies, the self-employed, landlords, construction workers, taxi & cab drivers and much more. We have offices in Tulse Hill, Dulwich, Battersea and Devon.