Change over to holiday rentals?
I have several family houses let on ASTs and now old age is approaching and taking into account various tax positions, IHT, CGT etc as they are all in high demand tourist areas and would easily let as holiday or air BB accommodation I wonder if this is time to change.
I was looking to eventually end the tenancies and use the houses as holiday lets as I understand this would then be a business as opposed to residential lettings the latter of which the tax man does not look on as a business.
Any thoughts or advice would be appreciated.
Jackie
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Is it worth it?
Member Since January 2020 - Comments: 102
11:39 AM, 5th February 2021, About 5 years ago
There are clear benefits in having a FHL, mainly the business property relief for CGT & IHT purposes.
There is however a minimum number of days the property has to be available for hire, and minimum days of actual hire.
If you have brought forward losses on the ASTs, they can not be set against the FHL profit.
Member Since July 2013 - Comments: 59
10:13 AM, 6th February 2021, About 5 years ago
This is something that I’ve have transitioned into very successfully.
There is a very good free podcast which I used to get the majority of my learning here; thesapodcast.com
Member Since July 2013 - Comments: 1266 - Articles: 1
11:50 AM, 7th February 2021, About 5 years ago
Bear in mind you will be regulated as in the hospitality sector and you will need daily staff to turn over the rooms which can eat into the income. There are firms but they too cost money.