| This article is meant as a guide only. Advice should | | | | And holiday lets must be (both): |
| be taken from a qualified person. | | | | * Short term lets of not more than 31 days. |
| Letting a fully furnished holiday home in the UK | | | | * The only lets over a period of at least seven |
| may mean the income made is treated differently | | | | months. |
| than other rental income. Holiday lets are | | | | Your income from you holiday let is subject to |
| considered a business, where as other property | | | | income tax, but you can off-set expenses for |
| letting income is classed as investment income. | | | | example: |
| The are some tax incentives for holiday lets, but | | | | * Repairs and maintenance. |
| your accommodation must comply with inland | | | | * Decorating. |
| revenue rules, referred to as "QUALIFYING | | | | * Heating & lighting. |
| TESTS" which are: | | | | * Legal and letting agent's fees. |
| * Based in the UK. | | | | * Management fees and cleaning costs. |
| * Furnished rental accommodation. | | | | * Insurance. |
| * Available for holiday letting to the public for at | | | | * Mortgage interest payments. |
| least 140 days a year. | | | | If you make a loss, you can off-set this against |
| * Actually let as a holiday let for at least 70 days | | | | your other income to reduce your tax bill. You |
| a year (andthese must be commercial lets, not at | | | | can avoid paying capital gains tax on the sale of |
| cheap rates to friends andfamily). | | | | the property if you roll-over the income within 3 |
| * Your occupier cannot stay for more than 31 | | | | years to another holiday letting property. |
| days in any 7 month period. | | | | There are other advantages, and as stated |
| * Lets must be at the full market value. This | | | | before, take professional advice before heading |
| means letting yourcottage to family for £2 a | | | | into holiday letting. |
| week will not count. | | | | |