Tax blow for owners of British holiday lets

StevieJ

smamst wrote: »

What happens to people who have bought holiday lets in rural areas and they don't meet the new conditions or even for that matter the existing conditions?

You don't have to pay tax on your profits or more likely you won't have any qualifying inputs (or maybe pro rata).

carolt

StevieJ wrote: »

Not sure why running a business is particularly greedy.

Tell that to all the people priced out of the areas they grew up in.

Thrugelmir

smamst wrote: »

What happens to people who have bought holiday lets in rural areas and they don't meet the new conditions or even for that matter the existing conditions?

Then they personally pick up the tab.

Thats why Devon Cornwall were popular as 70 days letting out of the property in 365 days of the year wasn't too challenging.

Then even if a loss was made it was offsetable against personal income tax. So for a 40% taxpayer very effective way of owning a second home.

StevieJ

carolt wrote: »

Tell that to all the people priced out of the areas they grew up in.

Well without tourists there would be a lot less jobs as well, wait a minute they would be able to afford those expensive cottages if they were on the dole. Oh what a tangled web we weave.

headcone

Hell,looks like i`ll have to sell my Babbacombe bolt hole.

I think not.

treliac

StevieJ wrote: »

Not sure why running a business is particularly greedy.

So having a holiday let is more worthy than having a buy to let?

headcone

treliac wrote: »

So having a holiday let is more worthy than having a buy to let?

Not at all,either method is merely a way of generating income.

You do it your way I`ll do it mine.

chucknorris

smamst wrote: »

What happens to people who have bought holiday lets in rural areas and they don't meet the new conditions or even for that matter the existing conditions?

First of all I do not own holiday lets so I am merely expressing an opinion rather than speaking from experience. But I do not think this change in the tax rules will effect genuine holiday letting businesses because 10 weeks is easily achievable when you have:
July/August
Xmas
New year
Easter
Half term weeks
Plus decent mid season weeks in June/September

I believe these changes are aimed at people who have second 'homes' but have been paying lip service to the tax rules by letting it out a few weeks in order to claim the tax concessions.

If you did find yourself one or two weeks short surely it would be advantageous to let it out at a suitable (possibly huge) discount to make sure that you qualify. But I don't think it would come to that for a genuine holiday let business.

It is something we have looked at, but I do not like the idea of managing remotely or the high fees charged by local third parties.

Davesnave

treliac wrote: »

So having a holiday let is more worthy than having a buy to let?

Can be. If people here understood the economics of running smallholdings in places like Wales and parts of the Westcountry, they'd maybe appreciate that a let can make the difference between viability and going under. It's OK for those who have an external source of income to subsidise the farm. e.g. ex-business people on pensions, but that's not all owners, nor should it be.

I'm not bothered. I considered making a holiday let here, but then decided the loss of privacy & expense wasn't worth it.

julieq

Anyway, this is closing a tax loophole, not about making property more affordable in rural areas. Even if people offload cottages, there will be people taking them on to run as real holiday lets because fundamentally it's a decent investment and the areas are still desirable. And the well heeled will still buy them as places to live because the areas are desireable.

Neat loophole though. Wish I'd heard about it.