Changing the way your buy-to-let profits are taxed

Photo by Josh Hild on Unsplash

1. Sharing spousal income

2. Changing to a Furnished Holiday Let

  • Your property must be in the UK or the EEA
  • The property must be commercially let (you must intend to make a profit)
  • Your property must be sufficiently furnished for normal occupancy
  • The property must be available to be let for 210 days and must actually be let for 105 days in (broadly) a tax year
  • You cannot count days let to friends or relatives at a reduced rate
  • You cannot count lets that exceed 31 days
  • You can deduct all of the interest you pay on your mortgage
  • You can claim capital allowances on plant and machinery for items such as furniture, fixtures and equipment
  • Your profits will count as earnings for pension purposes (Contribution levels)
  • You can claim Capital Gains Tax relief for traders

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