Rental Property

Question 1

Furnished holiday let

Answer 1

Need to be in UK and eea
Must be on commercial rent basis
Available Let to public for at least 210 days in tax year
Should be let for at least 105 days in any tax year
Can be let for continuation periods of more than 31 days
But such periods should not be do more tha 155 days in a tax year

Question 2

Tax benefits of holiday let

Answer 2

IHT - business relief can be claimed on death after 2 years if the qualifying period and conditions are met
CGT- entrepreneurs relief as regarded as trade on disposal after 12 months
Roll over relief
Loss relief
And hold over relief all available
INCOME TAX - will qualify as qualifying earnings for pension contributions
Income classed as trading income and so expenses can be fully deducted from profits
Capital allowances can be claimed and losers can be used to reduce income tax bill