Furnished holiday lets in the UK offer a number of tax benefits, but could be too complicated for owners to take advantage of, Saffery Champness warns
The popularity of staycations is set to continue, with nerves around foreign holidays prompted by issues at airports and the cost of living crisis.
Chartered accountancy firm, Saffery Champness, examines the tax implications for holiday accommodation providers offering furnished holiday lets, including capital allowances, capital gains tax, national insurance and VAT.
As a variety of different accommodation types are being provided, it is necessary for the tax treatment to be assessed on a case-by-case basis.
Furnished holiday lets are considered separate from other residential and commercial properties and are treated as a trading business by HMRC and taxed as such.
