A BBC news article today:
https://www.bbc.co.uk/news/uk-...and-cumbria-52420392
It's about people with second-home owners in the Lake District who had declared those homes as holiday lets.
Holiday let properties are subject to business rates. Many of those would be of lowe enough rateable value so as to get small business rate relief so don't actually pay business rates. The ÂĢ10k grant being paid out by councils to businesses does apply to such holiday lets. The government needed to bring in the grant very quickly and recognised that there would be winners as well as losers in such a scheme..
I have only one client to has a holiday let property, the cottage next to her house. It's not a second home for her. It's only used by people taking one or two week holidays. She looks after the cottage and does all the cleaning etc. She said to me she disdn't think she would claim the ÂĢ10k grant as she didn't feel comfortable about it.
There are strict tax rules for properties to qualify as holiday lets. One of the rules is that the property has to be available to let for a minimum of 210 days a year. Another rules is that it has to be actually let for a minimum of 105 days a year. Although the owner can stay in the property that time cannot be included in either the 210 days or 105 days thresholds.
There are some tax beneifts for holiday letting compared to ordinary residential letting. Ordinary residential wouldn't qualify as holiday letting as there's another rule - for holiday letting purposes, those thresholds exclude any lets which are more than 31 days to the same person.
Here ends today's tax lecture