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Moore (South) LLP were pleased to co-sponsor the CLA's Holiday Lets Masterclass held on Monday at the Garlic Farm in Mersley Lane.

Esme Shakeshaft, local partner based in our Isle of Wight office in Newport, looked at the various tax implications of running a furnished holiday let enterprise - initially reviewing the qualifying criteria to ensure that such income, whilst remaining assessable as rental income, is treated in many ways as if it were from a trade. Esme continued with the major advantages of the deemed trade status:

• the availability of capital allowances
• capital gains tax reliefs, such as entrepreneurs' relief that reduces the tax on qualifying disposals to 10%, and rollover relief on the reinvestment in replacement of business assets.
• income that counts as earnings for calculating maximum pension contributions.
• 100% business property relief possibly being available for inheritance tax purposes where the level of additional services provided is over and above those traditionally associated with self catering properties

Finally, Esme concluded with a review of the VAT position and options on restructuring the business ownership to get around the VAT registration problem.

The co- sponsors and co-presenters of the CLA event included Sarah Wood, the owner and founder of Mulberry Cottages, and Mark Weaver, managing partner and founder of CLM. Sarah gave an update on the current holiday lettings market and tips on how to achieve better occupancy rates and improved website formats; and Mark looked at the benefits of business planning, diversifying within a business and a reminder that the banks are keen to lend!

Robin Edwards, Regional Director of the CLA, reminded us of the BPS applications deadline of 15 June and advised that there should be over £2million funding from the EU for rural grants via Solent LEP and DEFRA. This would be a great boost to rural investment in our area and in Mark's concluding words " make sure you are at the front of the queue and get your application in ahead of the rest".

If you have a furnished holiday let property, or perhaps have plans to convert a barn and start a holiday letting business, please contact Esme Shakeshaft or your usual Moore partner.


Esme Shakeshaft T:01983 824812

[email protected]