PROMOTION Holidays at home With so much international travel upheaval recently and the future stil uncertain, many people might be considering whether holidays in the UK are simply going to be easier for the foreseeable future and this might include buying a holiday home of their own state agents have reported a surge in interest for seaside and country properties in recent potential tax benefits. The criteria you need to meet are: The property is available for letting for weeks however it is important to fully understand your tax position to avoid landing yourself with a large at least 210 days a year and; It is occupied by paying guests for at least 105 days a year, but the same guest llability, especially ifyou already own one can't be in your property for more than or more other properties. You also need to decide if it is going to be home for your own use only, or if you intend to let it out. Firstly, consider how you finance the purchase if you need a mortgage and are 31 days (unless it is exceeded because something unforeseen happens). If your property meets the criteria for a FHL, you can also claim capital allowances on your property related Jo White is a Director of Tax Advisory at Kreston Reeves Jo.white@krestonreeves.com T: 0330 124 1399 not buying it outright. There are not many purchases and you are currently able to deduct all of the mortgage www.krestonreeves.com lenders who offer mortgages for holiday Finally, consider the timing of and take advice before selling the property, as Capital Gains Tax may be payable in the future. Considering all of these factors is important to get a true picture of the costs of holiday home ownership.+ lets and following the Covid-19 pandemic interest and other finance costs before it might be more difficult to get funding Consider also how you own the property. Stamp Duty Land Tax ("SDLT") is caleulated at a different rate if you own an existing property for example, if you are buying a property worth E400k and you already own one or more properties, then you will pay SDLT which will cost £12k compared to nothing if it was your only home. This is based on the rules announced Economic Area properties together. by the Chancellor on 8 July 2020. If you plan to rent the house out to other prople to help cover the costs and you meet the criteria for Furnished Holiday Lets (FHL.) then there are calculating tax liability. If you own more than one property as a FHLand one or more doesn't meet the letting condition of 105 days, then you can elect to apply the condition to the average rate of occupancy called an averaging election. You can only average across properties in a single FHL business and you can't mix UK and European Ifthe property is only used as a FHL. and is closed for part of the year then you can deduct all of the expenses such as KRESTON REEVES Insurance and loan interest for the whole year, providing you don't live in it. Kreston Reeves has offices in Brighton, Chichester, Horsham, Worthing, London and Kent. www.krestonreeves.com PROMOTION Holidays at home With so much international travel upheaval recently and the future stil uncertain, many people might be considering whether holidays in the UK are simply going to be easier for the foreseeable future and this might include buying a holiday home of their own state agents have reported a surge in interest for seaside and country properties in recent potential tax benefits. The criteria you need to meet are: The property is available for letting for weeks however it is important to fully understand your tax position to avoid landing yourself with a large at least 210 days a year and; It is occupied by paying guests for at least 105 days a year, but the same guest llability, especially ifyou already own one can't be in your property for more than or more other properties. You also need to decide if it is going to be home for your own use only, or if you intend to let it out. Firstly, consider how you finance the purchase if you need a mortgage and are 31 days (unless it is exceeded because something unforeseen happens). If your property meets the criteria for a FHL, you can also claim capital allowances on your property related Jo White is a Director of Tax Advisory at Kreston Reeves Jo.white@krestonreeves.com T: 0330 124 1399 not buying it outright. There are not many purchases and you are currently able to deduct all of the mortgage www.krestonreeves.com lenders who offer mortgages for holiday Finally, consider the timing of and take advice before selling the property, as Capital Gains Tax may be payable in the future. Considering all of these factors is important to get a true picture of the costs of holiday home ownership.+ lets and following the Covid-19 pandemic interest and other finance costs before it might be more difficult to get funding Consider also how you own the property. Stamp Duty Land Tax ("SDLT") is caleulated at a different rate if you own an existing property for example, if you are buying a property worth E400k and you already own one or more properties, then you will pay SDLT which will cost £12k compared to nothing if it was your only home. This is based on the rules announced Economic Area properties together. by the Chancellor on 8 July 2020. If you plan to rent the house out to other prople to help cover the costs and you meet the criteria for Furnished Holiday Lets (FHL.) then there are calculating tax liability. If you own more than one property as a FHLand one or more doesn't meet the letting condition of 105 days, then you can elect to apply the condition to the average rate of occupancy called an averaging election. You can only average across properties in a single FHL business and you can't mix UK and European Ifthe property is only used as a FHL. and is closed for part of the year then you can deduct all of the expenses such as KRESTON REEVES Insurance and loan interest for the whole year, providing you don't live in it. Kreston Reeves has offices in Brighton, Chichester, Horsham, Worthing, London and Kent. www.krestonreeves.com