Holiday Let - Talk to me
Discussion
Bit of a random subject I know, buy Pistonheads normally comes up with the goods 
My folks are considering (with the help of myself & my brother) letting part of their property as a holiday let. They are fortunate enough to live in a property that can very easily be divided into 2 separate units (as the previous owners had let out half of the property prior to my parents purchasing the property back in the 1970s).
The plan would be to let the self-contained accommodation out on a weekly basis for perhaps 15 wks a year (mainly during the spring / summer), with the rental income being used to subsidise my parents pensions. It would also make better use of what is a lovely house (in a coastal part of North Devon), rather than it being on a drain on my parents finances. When the holiday let was not occupied, it would simply become part of the main house again (there is a dividing door that can simply be unlocked).
The stumbling block for my old man is the paperwork side of things, and that is the point of this post - can anyone that has done something similar advise further re:
- Would letting out part of the property mean change a of use would be required?
- Any implications regarding council tax?
Obviously we are aware that tax would be payable on the extra income and that the appropriate insurance would be required – what else would need to be considered?
Any further advice would be appreciated. I plan to set up a meeting with a local Holiday let company shortly, but thought in the mean-time I'd pop a post here!
Cheers in advance
My folks are considering (with the help of myself & my brother) letting part of their property as a holiday let. They are fortunate enough to live in a property that can very easily be divided into 2 separate units (as the previous owners had let out half of the property prior to my parents purchasing the property back in the 1970s).
The plan would be to let the self-contained accommodation out on a weekly basis for perhaps 15 wks a year (mainly during the spring / summer), with the rental income being used to subsidise my parents pensions. It would also make better use of what is a lovely house (in a coastal part of North Devon), rather than it being on a drain on my parents finances. When the holiday let was not occupied, it would simply become part of the main house again (there is a dividing door that can simply be unlocked).
The stumbling block for my old man is the paperwork side of things, and that is the point of this post - can anyone that has done something similar advise further re:
- Would letting out part of the property mean change a of use would be required?
- Any implications regarding council tax?
Obviously we are aware that tax would be payable on the extra income and that the appropriate insurance would be required – what else would need to be considered?
Any further advice would be appreciated. I plan to set up a meeting with a local Holiday let company shortly, but thought in the mean-time I'd pop a post here!
Cheers in advance
Letting a property as a Holiday let is looked on as Trading for both taxation and Planning Regulations.
So, the first thing that would be required would be local authority consent.
If consent is given this will probably give rise to the necessity to pay Business Rates
Secondly, the owner of the holiday let would need to register for self assessment so they can return the holiday let profits (or losses) each tax year.
Thirdly, if and when the house is sold, that part of the house which was used for teh holiday let will be excluded from the general Main Residence Capital Gain s Tax exemption - so there may be a CGT liability arising.
So, the first thing that would be required would be local authority consent.
If consent is given this will probably give rise to the necessity to pay Business Rates
Secondly, the owner of the holiday let would need to register for self assessment so they can return the holiday let profits (or losses) each tax year.
Thirdly, if and when the house is sold, that part of the house which was used for teh holiday let will be excluded from the general Main Residence Capital Gain s Tax exemption - so there may be a CGT liability arising.
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