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