Those considering setting up a holiday let business should consult a tax specialist to be certain of their tax arrangements.
Those wanting to maximise their rental income from a holiday let will need to get their occupancy rates as high as possible during off peak seasons. Creating a desirable off-peak offering needs you to understand what appeals to your typical holiday visitor and then investing in these features. These can range from the expensive, for example a high-end kitchens for the gastronomes, a hot tub, or a wood burner to make cold days and nights cosier or the small things such as wellington boots, fleecy blankets and hot water bottles.
The stamp duty holiday has been extended and is available on buy-to-let and holiday let property sales that complete before or on 30 September 2021. These rates are advantageous for buy-to-let and holiday-let buyers compared to standard rates. For example, properties at £250,000 have a stamp duty rate of 3% compared to 5% before the holiday scheme was in place. Buyers wanting to take advantage of the stamp duty holiday will need to act quickly as a specialist holiday let mortgage could still take many months to complete. An alternative for those needing to access capital fast is a bridging loan, while rates and fees can make this more costly, completions times can be days or weeks. Buyers should consider the benefit of the stamp duty saving offset by the higher costs of this finance, while also being able to open more quickly for the peak Summer season.
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