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[T69]Tax On Second Home

by Simon, Sim

More and more Britons are taking localholidays this year, and this means that a second home could turn into a cashcow if you are willing and able to rent it out to holiday makers and visitorsthrough the year.

It's been said that more than four millionpeople rent cottages and holiday apartments in the UKevery year, and self-catering is beginning to show up as one of thefastest-growing areas of the UKholiday market, so get on board now and start to bring in the bucks with yoursecond or holiday home.

But just before you start, here's what youneed to know about the holiday letting industry and the law:

The main benefit when it comes to holidayhomes, as oppose to renting out other types of property, is that if you let outa furnished holiday home in the UK,

Firstly, renting out your property as aholiday home means that your rental income from this property will prove to bemore profitable for tax purposes, as opposed to what you may earn from anotherrental income.

There are, however, some regulations whichyour property must adhere to in order to be legally accepted as a holidayrental.

For your property to count as a holiday let,it must be:

? In the UK

? Furnished

? Available forholiday letting to the public for at least 140 days a year

? Actually let as aholiday let for at least 70 days a year (and not just at cheap rates to friendsand family)

The holiday lets must also be both:

? Short term letsof not more than 31 days

? The only letsover a period of at least seven months

? The propertycan't be rented to the same person for more than 31 days in the year

? If you do meetthese requirements in a seven month period then there are no restrictions onlonger lets in the remaining five month period, and these rental do not countas holiday lets.

If your property does not qualify as aholiday let, you will be taxed as normal for rental income. The most importantaspect of renting a holiday property is the make sure you have great . Direct Line For Business offers excellent low premiums for , so visit today for a quote.

Pleasenote that Direct Line for Business does not control and cannot guarantee therelevance, timeliness, or accuracy of the article above.

There has never been a better time to purchase a second home. Many people may not know that 36% of the homes sold last year were second home purchases. This is partially due to a boom in the investment and vacation home market. People have realized that real estate is the place to look for secure and profitable investments. Investors are getting smarter as the business of making money has become more complicated and ridden with pitfalls. Traditional markets like the stock market are fluctuating madly and are difficult to interpret even by professionals. The one market that has shown steady growth and expansion is real estate.

Today's investment theme is diversity and real estate is a great place to start. With numerous growth markets around the country and the allure of many of America's destination cities the reality of purchasing additional real estate is that it is a safe and profitable venture. Now, when thinking about a second home purchase the first thing you should consider is whether you are buying for personal use (vacation home) or for an investment or revenue property. If you are buying for a vacation home, have you considered the revenue possibilities? A vacation home will likely sit un-used for much of the year. If you only use the home for 2 or 3 months, why not consider renting it for the other months? A weekly vacation rental can bring in a nice sum of money and help the home to pay for itself. And, the home will still be available to you whenever you want to use it.

Investment properties can rake in a great profit if planned correctly. Long-term monthly rentals are great for paying off the mortgage on a property. The bonus being that you are growing your equity the whole time. Of course, as your equity grows so does your ability to purchase additional properties. Simply put, there are few areas of investment that can offer the benefits of real estate. It is a market that is stable and growing and shows very few signs of slowing down in the near future. With the growing need for quality rentals and weekly vacation rentals, this is a market that is just waiting to be tapped.

Article Source : Pg. 13

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Both Simon & Cj De Heer are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Simon has sinced written about articles on various topics from Home Improvement, Insurance and Adventure Travel. . Simon's top article generates over 165000 views. to your Favourites.

Cj De Heer has sinced written about articles on various topics from Real Estate, Medicine and Real Estate. CJ de Heer is a certified REALTOR;? specializing in the market. For access to some of the most stunning. Cj De Heer's top article generates over 60500 views. to your Favourites.