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These apartments are designed specifically with either the Private or Business Investor in mind – and as such they can be used from Easter
through to the 31st of October as Holiday Let flats, and from the 1st of November through to March for general Residential purposes or as 2nd
Homes ... or of course as Holiday Let apartments all year around – the choice is yours.
Furnished Holiday Homes are nice to have, often profitable to let out, and bring all sorts of tax advantages too – that’s why there are currently
about 90,000 such holiday letting units in the UK. On top of regular rental return the asset, which has potential for capital growth, is the owners
right to enjoy the apartment for potentially 1 month a year even in peak season.
The Tax Benefits
A furnished Holiday Flat in the UK can enjoy generous tax reliefs by comparison to other property investments. To qualify it must be furnished, let
on a commercial basis to realise a profit, be available for letting 140 days a year, and be let for at least 70 of those (although not more than 31
consecutive days to the same tenant).
- If the arrangement is structured properly, business property relief applies where a property is held for two years
or more, making it exempt from inheritance tax (IHT).
- Anyone who sells such a qualifying property after 2 years of ownership pays 10% capital gains tax (CGT) on any
gains on the first £1 million, and then 18% thereafter arising from the disposal of the property.
- Rollover relief also applies to any chargeable gain, and can be rolled over into another qualifying property (such
as other holiday let units) acquired one year before or three years after disposal of the original asset.
- Any trading losses incurred by the Holiday Home business can be potentially offset against income, and various
expenses on the property such as cleaning costs are deductible against income.
- Loan interest on the property is also deductible against income. So, where a property brings in £2,000 per month in rental and interest is charged at say £1,500 on the loan, just £500 is taxable.
Prices from £295,000 per
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