Buy-To-Let Tax Crackdown Fuels Holiday-Let Boomon
Landlords are now only able to offset 25% of their mortgage interest against Tax. From 2020 this will disappear completely.
As a result, many buy-to-let landlords have sold their properties and the number of new buy- to-let mortgages are falling.
Holiday-let landlords can still offset mortgage interest against Tax and pay business rates, instead of council tax.
To qualify for holiday-let status, properties must be:
- available for let 210 days a year,
- let for at least 105 days, and
- no single let must be more than 31 days.
It is important to note that offering a property as a holiday-let is a breach of the terms of most buy-to-let mortgages. Previously holiday-let mortgages were the domain of specialist lenders, but more mainstream lenders are now providing these products.
With Brexit uncertainty and the poor exchange rate against the Euro, many families are opting to holiday in the UK, which is driving up the rents and making these investments more attractive.
Read our Brexit-related blogs here: http://www.reichinsurance.co.uk/media-centre/tag/brexit
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