Comments on Self Catering Holiday Home Buyer: Holiday let - Business Rates or Council Tax?

To answer anonymous. FHL and Business Rates are h...

2011-10-05T09:59:29.051+01:00

To answer anonymous.

FHL and Business Rates are handled separately by HMRC and the Valuation Office Agency respectively. Application for Business Rates is based on availability, not bookings, so proof of availability is required.

Secondly to qualify for FHL relief, an owner would presumably need to show evidence of booking income of a minimum 70 days, 105 days from 2012 onwards. Always best to consult a tax specialist.

what measures are HMRC taking to stop people setti...

2011-10-05T06:10:06.613+01:00

what measures are HMRC taking to stop people setting up second homes as Furnished Holiday Lets in order to avoid paying Capital Gains Tax?

Will the full FHL rules 2011 - 2012 need to be met...

2011-10-04T06:23:00.124+01:00

Will the full FHL rules 2011 - 2012 need to be met before a holiday home owner can be exempt from paying cuncil tax and pay business tax instead.
What proof of letting is needed in order to qualify for BT instead of paying Council Tax

Yes, you can get up to 50% relief, and in many cas...

2011-07-07T14:05:09.745+01:00

Yes, you can get up to 50% relief, and in many cases it is cheaper than paying 90% council tax.

Bear in mind business rates face a review over coming years which may put the cost up for you, and there are rumours that owners of holiday lets - i.e. individual dwellings - will be charged for rubbish collection separately, further increasing costs. Nothing has been officially announced yet though.

Andrew
Holiday Home Information

can I get small business rate relief on my holiday...

2011-07-07T12:25:27.096+01:00

can I get small business rate relief on my holiday let?

Thanks Andrew It will be interesting to see wheth...

2011-03-15T15:10:19.019Z

Thanks Andrew

It will be interesting to see whether they change it to match the changed requirement for Furnished Holiday Letting tax scheme where a property now has to be available for 210 days.

Have just spoke to one of the VOA offices in the S...

2011-03-15T14:47:13.532Z

Have just spoke to one of the VOA offices in the South West of England who confirmed that a holiday made available for 140 days or more in a calendar year is legally required to pay business rates and not council tax.

It is summarised here and i have asked them to provide more information to expand the article:
http://www.holidayhomeinformation.co.uk/uk/utilities-and-running-costs/council-tax-and-business-rates-on-a-holiday-let.html

Very cool idea! Thanks for posting this. Really it...

2010-12-17T07:52:42.161Z

Very cool idea! Thanks for posting this.
Really its amazing information about Holiday House Accommodation
Awesome job !!! well done keep it up.

There is lots of info on the Valuation office web ...

2010-01-25T17:40:17.748Z

There is lots of info on the Valuation office web site.

http://www.2010.voa.gov.uk/rli/static/HelpPages/English/help/help063-how_we_rate_holiday_cottages.html

I gained an estimate of the likley rateable value by putting in a partial postcode on the search page and finding a similar rental property.

http://www.2010.voa.gov.uk/rli/en/basic/find

The rates applicable for Dorset are based on the number of beds. This info from the site:

The value per unit (bed) adopted within this valuation scheme ranges from £390.00 to £670.00 depending upon size, location and other physical factors. The most commonly adopted value per unit within this valuation scheme is £625.00.