Friday August 24, 2018
Do you want to own a slice of the seaside? If you harbour dreams of buying your very own holiday home, follow our expert guide. We help you decide what to buy where, and how to finance it.
Live In or Let Out?
With increasing government restrictions on mainstream buy-to-lets, sales of holiday homes are booming. They’re regarded as a trade rather than an investment by HMRC. For tax purposes, mortgage interest costs are deductible from any rental income and capital allowances are available to tackle wear-and-tear.
However there are strict rules on what qualifies as a holiday let. According to HMRC the property must be available for at least 210 days a year, and must be let commercially as a furnished holiday home for at least 105 days in this year. You can’t count the days you let to friends and family at zero or reduced rates. Check the terms of any lease, as it may prohibit sub-letting.