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22/05/21 14:29
Furnished Holiday Letting - an attractive tax proposition.
Did you know that, in the UK, Furnished Holiday Letting, although taxed as Rental Income, is also accepted as a trading business by HMRC?
This thereby provides Capital Allowances on Fixtures, and allows use of Business Asset Disposal Relief (formerly Entrepreneurs Relief) for Capital Gains Tax (ie a CGT rate of 10%) or Business Asset Rollover Relief (ie full deferral of CGT if proceeds are reinvested in another property of the same kind).
The property needs to be available for letting for 210 days per year, and let for at least 105 days per year.
Now that we are exiting Lockdowns, it might be worth a consideration if you have rental properties.
This thereby provides Capital Allowances on Fixtures, and allows use of Business Asset Disposal Relief (formerly Entrepreneurs Relief) for Capital Gains Tax (ie a CGT rate of 10%) or Business Asset Rollover Relief (ie full deferral of CGT if proceeds are reinvested in another property of the same kind).
The property needs to be available for letting for 210 days per year, and let for at least 105 days per year.
Now that we are exiting Lockdowns, it might be worth a consideration if you have rental properties.
Contact us to discuss.
Written by:
Norman Elliott FCA
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