Thinking of running a holiday let?
Running a holiday let is treated by HM Revenue and Customs in the same way as a trading business and so there are different tax considerations to a buy to let investment. It is important you seek professional tax advice for an investment.
For a property to qualify as a holiday let, and to stop people from trying to get around the system by renting it like a buy to let, the property has to be available for at least 210 days per year, it has to be actually let for at least 105 days and there can’t be any periods of longer term accommodation (31 days at a time) that add up to more than 155 days.
Like Buy to let, holiday lets will carry a 3% surcharge on Stamp Duty Land Tax, but returns on successful holiday let investments are generally higher than buy to let. There are, of course, additional costs and greater volatility to consider with a holiday let, but the rewards can still outweigh additional outgoings. The average rental yield achieved by holiday let a holiday let was 8.8% There are lenders out there that are prepared to lend on holiday lets, but there are limited options.
Get in touch if you are looking in to invest. We work with specialist lenders that take a flexible and commercial approach to holiday lets