Tourism in the UK is booming, and as more Brits choose to staycation over going abroad, FHLs have become hot property. Public demand is higher than ever, and according to research by Travelodge, an estimated 69% of Britons chose to take their annual summer holiday in the UK last year, up from 57% in 2018. There is clearly a need for more holiday homes in the UK, but this high demand isn’t the only positive for investors.
Taking advantage of special tax rates, FHLs can be an invaluable asset. Doing exactly what it says on the tin, FHLs are ready-to-go investment properties that are let out to holidaymakers for commercial use. As long as it meets the correct criteria, this type of investment benefits from of a number of tax advantages, providing investors with a generous financial boost AND allowing them to have a holiday home for the rest of the year. If run correctly, FHLs are a win-win investment.
For your property to qualify as an FHL, it must:
When your property meets this criterion, you become eligible for a number of tax advantages that don’t apply to typical buy-to-let. Because FHLs have the commercial business aspect, the government allows you certain privileges that can ultimately boost your revenue by a substantial amount in the long run.
Want to find out more? Get in touch with one of our experts today!
Assetz Property and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transactions.
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The price of property can go down as well as up. Historic performance should not be taken as a guarantee of future performance. Geared property investment with mortgages can increase risk of losing money as well as increasing the possible gains. Mortgage products referred to in the website can be withdrawn by the lender or have rates or other terms changed without notice and reference to any products does not imply they are certain to be available in the future. Mortgages referred to may also have certain applicant restrictions and are for indicative purposes only although reasonable endeavours have been used to ensure that they are available at the time of publication and are applicable to a significant number of our purchasers. This site is for information purposes only and nothing on this site should be taken as definitive investment advice for your particular situation without you seeking additional guidance directly from ourselves or from other finance and property professionals. Property particulars on this site do not form part of an offer or contract. The developer and Assetz Property Ltd, whilst endeavouring to ensure complete accuracy in these property particulars, cannot accept liability for any errors. Valuations of property or indicated rents achievable are either estimated or derived from valuations and/or comparables and can change and should not be relied upon without your own additional valuation and research, but we have carried out reasonable endeavours to achieve accurate indications for these figures. All descriptions, dimensions, areas, reference to condition and, if necessary, permissions for use and occupation and their details, are given in good faith as provided by the developer and are believed to be correct. However, these are subject to change, especially, but not wholly, relating to any property that is off-plan or not yet complete. Any intending purchaser should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to their accuracy. The onus is on each individual investor to undertake their own due diligence, enquiries and inspections. Where shown, net yields are calculated as rental income less expected service charges less expected ground rent as a percentage of the property price. No void periods, optional letting agent costs, repairs or other costs are deducted. Our standard Terms and Conditions of Sale will apply. E. & O. E.