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HomeDorset EastBournecoast holiday lets offer alternative to buy-to-let landlords facing tax relief cuts

Bournecoast holiday lets offer alternative to buy-to-let landlords facing tax relief cuts

The Government cuts on tax relief for landlords coming into action in 2017 may lead many owners of rental properties to explore the financial benefits of the holiday letting market. Bournecoast have successfully offered both options for over 50 years with both long and short-term lets alongside selfcatering holiday lets, with this past year welcoming more holiday visitors than ever. Currently buy-to-let landlords are only taxed on the profit generated from renting out their property, which means that mortgage costs are offset and tax paid only on what remains. The new tax rules stipulate that tax will be due on turnover which will result in a potentially significant drop in net profit for landlords.

In order to ensure that you continue to maximise the full financial potential of your rental property, Bournecoast Holiday agents can assist in making the transition into the holiday letting market. Holiday lets with Bournecoast are offered fully furnished which means that under Government tax rules all expenses can be offset against the rental income of the property; something that will now not be applicable to traditionally let properties from 2017. HMRC also treat the running of a holiday let the same way for tax purposes as they would a business, offsetting any losses against future profits. Entrepreneur relief is also applicable to furnished holiday lets which then cuts any potential capital gains tax to 10%.

With weekly rentals during the peak summer season at times matching the monthly rental of a long term let, this only adds to the appeal of the desirable tax breaks for holiday lets, with the tax cuts for buy-to-lets looming.

Bournecoast currently offers a wide range of self catering accommodation from budget to luxury to suit all holiday visitors across the Bournemouth, Poole and Christchurch areas. With a record year for self-catering holiday lets, Bournecoast require more properties than ever in order to meet visitor demand. With award-winning beaches and events such as the Air Festival and Wheels Festival bringing more visitors to the area, demand has only been further increased for holiday accommodation in the area.

If you have never thought of the possibility for your rental property, holiday lets can at first seem more complex than long-term letting, however at Bournecoast their extensive experience means that they can offer a stress-free full management service which takes the running of the holiday let out of your hands. The occupancy levels of a holiday property are further enhanced whereby Bournecoast’s Letting Agency can let the property for up to 5 months during the quieter winter period, something the company has specialised in since 1960.

Holiday lets through Bournecoast can offer landlords the best of both worlds, with the flexibility of letting out your property year round, or for a shorter period with the advantage of being able to enjoy the property yourself throughout the year. In order to qualify for the tax reliefs, the property must be available for rental for 210 days per year and let out for at least 105 days.

The tax relief on buy-to-lets will be scaled back from 2017, so there isn’t a better time to get ahead of the market and enquire about how Bournecoast can assist with maximising the profit of your rental property. For information regarding their experience with Holiday Lettings and their Landlord services, give their team a call on 01202 437888 or simply pop into one of their offices in Southbourne or Westbourne, or visit their website at www.bournecoast.co.uk.

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