9:45 AM, 27th November 2017, About 4 years ago 15
I have just been looking at the wording of the s24 legislation (Tenant Tax) and I noticed that one of the sub-sections state:
(4)An amount borrowed for purposes of a property business is not a dwelling-related loan so far as the amount is referable (on a just and reasonable apportionment) to so much of the property business as consists of the commercial letting of furnished holiday accommodation.
So I conclude that if a property is purchased with a commercial loan as a furnished holiday letting then it would not be affected by the Tenant Tax.
However, there is nothing I can see that then makes the property subject to the Tenant Tax if it is subsequently changed so as to be let as a standard AST (as it would still meet the criteria of having been purchased for the purpose of a holiday letting).
I guess the commercial lender would have to agree the change from a furnished holiday let to a standard AST letting, the same as when residential owners get consent to let from their mortgage providers, but if such a consent was granted by the commercial lender, then the property would presumably remain exempt from the s24 Tenant Tax???
I’ve no idea if this could work in practice, it just seemed a bit of a potential loophole in the s24 legislation.
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Advice and implementation provided by a practising Barrister-At-Law with £10,000,000 of Professional Indemnity InsuranceBook Now
|“Account”||means an account required to access and/or use certain areas and features of Our Site;|
|“Cookie”||means a small text file placed on your computer or device by Our Site when you visit certain parts of Our Site and/or when you use certain features of Our Site. Details of the Cookies used by Our Site are set out in section 13, below;|
|“Cookie Law”||means the relevant parts of the Privacy and Electronic Communications (EC Directive) Regulations 2003;|
|“personal data”||means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and|
|“We/Us/Our”||Means Property118 Ltd , a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.|
|Name of Cookie||Purpose||Strictly Necessary|
|JSESSIONID||Used only to collect performance data, with any identifiable data obfuscated||No|
|__cfduid||This cookie is strictly necessary for Cloudflare's security features and cannot be turned off.||Yes|
|Name of Cookie||First / Third Party||Provider||Purpose|
|__utma, __utmb, __utmc, __utmt, __utmz||First||Helps to understand how their visitors engage with our website|
|_fbp||First||Helps to understand how their visitors engage with our website|