With the growing popularity of home and room rental through services such as AirBnB and a number of landlords going a step further to create their own private rental businesses, it’s important to be aware of the rules and regulations.
For example, a Furnished Holiday Let business will cease if occupancy conditions are not complied with, these conditions state that the accommodation must be available for short-term letting for 210 days across the tax year, and actually be let for 105 of those days. Also, accommodation should not normally be in the same property for a period of 31 days in 155 days in any tax year. Long-term letting should not exceed 155 days in the tax year either.
When a landlord does rent out their property, it’s important to be aware of the Property Allowance, which provides full tax relief if the income in the year is £1000 or less. If the Landlord has no other income that is subject to self-assessment, then they’re not required to fill in a tax return for the property income. For those earning over £1000, a partial relief claim may be available, where the landlord can choose to either deduct the actual property expenses from their income, or deduct the full £1000 property allowance from their income.
If you’re planning on renting out property or need assistance in making sure you’re getting the reliefs you’re entitled to, get in touch with our experts today, and let us help you make the most of your business.
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