Holiday letting – comes under the “ serviced accommodation banner but is taxed very differently……
Did you know that it can be much more tax efficient than other strategies? Capital allowances, capital gains and gifting are treated different than standard buy to let’s. The down side is that there is a lot of work in management – change overs, cleaning laundry etc. We outsource all of this to make sure our income is as passive as possible – but for some its a fun strategy where you get to meet lots of interesting people and perhaps use it yourself too.
We’ve successfully let a 2-bed house as a holiday home for several years now with good profit generation and flexibility to use it ourselves. The HMRC rule is that it must be let for a minimum of 210 days per annum and normally no more than 31 days in any one stay.
Recently we decided to let our own home as a holiday let too – whilst we continue to travel, work and volunteer abroad. Of course I’ll still be coaching and learning as long as I have good internet connection! Then we’ll be home for Christmas. Let’s see how it goes.
Want to find out more about whether this might suit your investing needs? I have a webinar video on just this topic giving my examples and sharing my knowledge. Let me know if you’d like to see it.
Book a chat with me if you’d like to discuss how investing in property could help you achieve more freedom – go to my website here https://propertyinvestingfoundation.com/ and click the ‘speak with Bronwen’ button