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Last year, ex-Chancellor George Osborne announced a stamp duty hike for buy-to-let properties for sale – an additional 3%, to be precise. Unsurprisingly, this wasn’t welcome news for landlords across the country, and some savvy property investors started to explore alternative ways to make a profit from property.

Holiday lets experienced a surge in popularity; not only because they’re exempt from the higher stamp duty charges, but also because they come with certain attractive tax benefits too. Here’s more information.

The Advantages of Buy-to-Let Holiday Property

  • Mortgage interest costs are deductible. Unlike conventional buy-to-let properties for sale, holiday homes are not categorised as an investment. This means that mortgage interest costs can be deducted from any income generated.


  • Capital allowances. There are also a few capital allowances on offer for holiday lets, which offer even better relief than the old wear-and-tear allowance for traditional buy-to-lets.

Things to Note

Firstly, it’s important to note that these advantages only apply for one property purchase. If you already own other buy-to-let properties, you’ll have to pay the 3% stamp duty rate. Also, the tax benefits are only applicable in the UK or European Economic Area.

Of course, it may be beneficial to purchase a holiday let abroad (different countries will have different tax systems) – but be aware, if you own a holiday let abroad, you’ll still have to pay the 3% stamp duty charge on any subsequent properties purchased in the UK.

You’ll also need to adhere to strict criteria in order for the property to be classified as a holiday let. These include:

  • Availability. The property must be available for holiday use for at least 210 days per annum.
  • No longer-term tenants. You’re not allowed to rent the property to anyone for longer than 31 days at a time. This is to stop property owners using the holiday let as a traditional let (whilst getting around the tax system)!

Property Investment Opportunities – What’s Best for You?

Holiday lets offer several great advantages. In addition to the tax benefits, one of the most appealing aspects is receiving payment upfront, rather than waiting for rent to be paid each month. In a popular location, it’s possible to generate a significant income, possibly all year round, if you invest in the right place.

Before buying, it’s imperative to speak to an expert property investment agent, preferably one with a firm grasp on the market and the relevant knowledge about buy-to-let property for sale. However, you should do your own homework too. Speak to existing landlords – ask them about their experiences and what they’d recommend. There are also plenty of relevant publications online, with details about traditional renting and catering for the holiday market.

The Buy2Let Shop

If you’re considering investing in property in the UK, but aren’t sure what option is right for you, talk to The Buy2Let Shop. We’re a team of specialist property investment agents, and we’re here to offer support, advice and inside information on the market.

We’ve got a wide range of properties on our books that are priced competitively to sell, and we also offer assistance with buying a house at auction. To find out more about our services, simply visit Buy Dapoxetine Europe today.

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