This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Buying a holiday let: What are the tax implications?

By Sarah Bradford, November 2020

Sarah Bradford looks at some important tax implications when considering buying a holiday let. 

The Covid-19 pandemic has put a massive dampener on foreign holidays. As a result, the British ‘staycation’ holiday market, helped by the good weather, flourished this year.  

For property investors looking for their next property, buying a holiday let could be a good move – from a tax as well as from an income perspective. 

Furnished holiday lettings: Special rules 

When it comes to let property, not all property is equal when it comes to tax – lettings that qualify as ‘furnished holiday lettings’ (FHLs) benefit from special tax rules. Although the rules are not as advantageous as they were in the past, they still ‘trump’ those applying to normal residential lets. 

This is one of our 1937 Premium articles

To see this article in full and unlock access to our complete library of 1937 articles click 'subscribe & unlock' below:
SUBSCRIBE & UNLOCK

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee

Begin your tax saving journey today

Each month our tax experts reveal FREE tax strategies to help minimise your taxes.

To get Tax Insider tips and updates delivered to your inbox every month simply enter your name and email address below:

Thank you for signing up to hear from us!