Property Letting

Question 1

When does Entrepreneur’s Relief apply?

Answer 1

On disposal after min 12 months ownership

Question 2

What benefit does qualifying earnings bring?

Answer 2

Qualify for pension contributions

Question 3

What reliefs are available for CGT purposes?

Answer 3

Roll over Relief
Hold over Relief
Loss Relief
Business Relief after 2 years - exempt from CGT on death

Question 4

How is the income treated?

Answer 4

Classed as trading income

Expenses can be deducted from profits

Capital Allowances

Losses can be used to reduce income

Question 5

Requirements for rental property to become a furnished holiday let

Answer 5

Must be located in the UK or EEA area

Must be let on a commercial basis

Must be available for letting to the public for at least 210 days in a tax year

Property should be let for at least 105 days a year

Must be let for continuous periods of over 31 days but not for more that 155 days in a ta year

Does not need to be at a holiday respite