| Rules
for holiday lettings
To make sure your property counts as a holiday
letting, it must be:
* in the UK
* furnished
* 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)
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The holiday lets must be (both):
* short term lets of not more than 31 days
* the only lets for at least 210 days (211 days in a leap
year)
Other restrictions
You can't let the property as a holiday let
to the same person for more than 31 days in the year.
However, if you meet all the qualifying tests
for 210 (or 211) days there are no restrictions on longer
lets in the remaining 155 days But these longer lets do not
count as holiday lets.
Your profit on UK holiday lettings is worked out in the same
way as for other rental income, except that you claim 'capital
allowances' rather than the 'wear and tear' allowance.
Examples of expenses that qualify for capital
allowances include the cost of furnishings and furniture,
and equipment such as refrigerators and washing machines.
You can learn more about capital allowances
and working out profits for UK holiday lettings in our related
article on expenses and allowances and in the land and property
help notes of the Self Assessment tax return.
If your property doesn't qualify as a holiday
let, you will be taxed as normal for residential property
lettings.
With UK holiday lettings, you can realise a tax advantage
if you make a loss on your earnings from the property, and
when you sell the property:
If you make a loss
Any loss can be offset against your other
income, not just the property income, reducing your overall
tax bill. Or you can carry the loss forward and offset it
against future letting profits.
Learn more about offsetting losses in the
land and property help notes of the Self Assessment tax return
(link above).
When you sell the property
You may be able to take advantage of Capital
Gains Tax (CGT) reliefs, such as 'business asset roll-over
relief'. For example, if you reinvest within three years in
another UK holiday letting property or certain other assets
costing the same as or more than you got for the property
you have sold, you may be able to defer payment of CGT until
you dispose of those new assets.
Buy-to-Let
Property Investment in Spain | Legal
Check List for Buying a Property in Spain |
Choosing
a holiday let property | Tax
on UK holiday lettings | Expenses
and allowances on income from property |
Tax
Efficient UK Furnished Holiday Lets |
