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AdrianC
03-03-2005, 13:59 PM
Hi,

I’m new to this Forum so hello all. :)
My first question is regarding holiday accommodation letting. I’m currently considering purchasing a property that is situated on a holiday park (In the UK). It’s not a caravan but a small bungalow. My plan is to rent it out for 1 and 2 week holidays.

The property is lease hold and the park administration/lease cost is £1500 a year.
Other associated costs include water and energy bills.

My questions are:

What is the tax rules regarding holiday lets?

What can I claim tax relief against? What about the interest on any loans I might have against the property?

I also own a house I currently let on an AST. Can I add any costs from both properties together for working out my tax liabilities/allowances or should they be treated individually?

One last question. If I made the holiday home available for let but failed to get any customers, could I still claim some kind of tax relief?

Thank you all in anticipation of your helpful responses.

Raggy
03-03-2005, 20:53 PM
Have you got a copy of IR150, Taxation of rents?

It's available free of charge (which means that you've already paid for it through your taxes) from your friendly local Inland Revenue office.

Even better, it answers your questions in a very readable form, and is from the horses mouth (sorry IR) rather than laced with interpretation.