Tax Benefits of Holiday Homes

Holiday homes have some of the best tax treatment of any investment.

Income Tax

• Expenses can be set against other income including PAYE earnings resulting in a tax refund
• Profits can be set against losses from other property investments such as buy to let
• Substantial tax refunds can be obtained from tax paid up to 3 years ago

Capital Gains Tax

• Capital Gains qualify for the new entrepreneur's relief giving an effective rate of 10%
• Any Capital Gains qualify for rollover relief allowing you to defer payment if you trade up to a better property.
• A married couple could make capital gains of up to £36000 per annum tax free by using annual allowances.