This category is about all aspects of Holiday Home Letting and will be of interest to owners of holiday lets across the UK. As Holiday Home Insurance Specialists we are proud to share tips, guidance and articles.

Whether you own an individual holiday home or cottage or a holiday cottage complex our holiday home letting articles are for you. Subjects covered include taxation, online scams and regulations.

Check out these posts: Holiday Letting Terms and Conditions, Registration Schemes for Short Term Lets, Buying a Leasehold Apartment to Holiday Let, Holiday Lets and Tax – what you need to know.

Furnished Holiday Letting rules with us a little longer

Furnished Holiday Letting rules with us a little longer. We are always looking for interesting snippets of relevant information to bring to our holiday home insurance clients. This extract is from our own accountants, Stevens & Willey and featured in their Summer 2010 newsletter.

The favourable Furnished Holiday Lettings tax rules are to be with us until April 2011 at least. Rather than continue with the withdrawal of the rules proposed by the previous Government, the Chancellor has cancelled the proposals.

However, the Government is to publish a consultation document over the summer about plans to change the tax treatment of furnished holiday let property from April 2011. The consultation will look at issues that: 

  • ensure the Furnished Holiday Letting rules apply equally to properties wherever they are in the European Economic Area:
  • increase the number of days that qualifying properties have to be available for, and actually let as, commercial holiday letting; and
  • change the way in which Furnished Holiday Letting loss relief is given.

We will know more about future changes as the consultation progresses. In the meantime there are a few things to remember:

  • Holiday accommodation in the European Economic Area that meets the conditions can be classed as a Furnished Holiday Letting, and perhaps save you tax. The conditions include the property being actually let for at least 70 days a year and not more than a continuous period of 31 days to the same tenant. 
  • Losses arising from Furnished Holiday Lettings can be set against other income. 
  • Should the property be sold then it may be possible to 
  1. roll over the gain into a further property or business asset, or
  2. reduce the gain by entrepreneurs relief 

If you have any queries about your own circumstances or the changes, speak to your tax adviser or accountant. 
  

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Holiday Home Insurance | Holiday Home Owners Require Liability Cover – Why?

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Holiday Home Insurance | Holiday Home Owners Require Liability Cover – Why? As a responsible holiday home owner you will always ensure that your holiday home is as safe an environment as possible for your guests and employee’s to frequent. However, it is often the unforeseen that will cause accidents leading to compensation claims which can be substantial.

A slippery path, a loose paving slab, weather beaten garden furniture! – Have you inspected yours lately?

A comprehensive Holiday Home Insurance policy, such as that arranged by Boshers will provide cover to indemnify you against your legal liability to pay damages and legal costs arising out of claims for bodily injury, death, disease or illness from a third party such as an employee, (i.e. a cleaner, gardener or key holder) and paying guests in connection with the running of your second home as a furnished holiday let.

How much Employers Liability Insurance should you have? If you have a contract of service with anyone who helps you maintain your holiday let business, whether spoken, written or implied and you provide them with work materials and equipment, then you may be regarded as their employer, irrespective of their tax status. It is a legal requirement, that you have in place Employer’s Liability Insurance of at least £5m, in practice many insurers provide cover of £10m.

How much Public, Products and Personal Liability Insurance should you have? Whilst not a compulsory insurance, we would recommend cover of at least £3m for small properties that sleep up to six guests and £5m for larger properties.

The above cover is generally provided as part of a packaged Holiday Home Insurance policy, also covering the buildings and contents of your holiday home.

For articles on Health & Safety for holiday home owners visit www.boshers.co.uk/blog. Additional guidance and holiday home insurance quotes are available from the Boshers Holiday Home Insurance Team on 01237 429444 or visit www.boshers.co.uk.

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Boshers | Holiday Home Insurance | Visit our Facebook Page | Click here…

Boshers | Holiday Home Insurance | Visit our Facebook Page | Click here… Holiday Let Owners can now keep up to date with useful snippets of information on all aspects of running a Furnished Holiday Let as well as useful Holiday Home Insurance information by visiting us at Boshers | Facebook Page. 

Visit now and become a friend – just click on the link Boshers | Facebook Page

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Tax Specialist Cautions FHL Owners Against Premature Actions

Tax Specialist, John Endacott of Accountants, Winter Rule welcomes the Emergency Budget announcements on the Furnished Holiday Let Rules.   

He commented; “The announcement today is in line with my most recent discussion with the Treasury specialists. I cautioned against premature action and stressed the need to better research the potential impact of any changes. Part of this was asking for any changes to be deferred until April 2011 to allow for further consultation. That has now been promised and I hope it leads to a better thought through solution to the government’s concerns.

For owners of complexes then it may be more appropriate to be reclassified as a true trade and we await a clear view from H M Revenue & Customs on that. As far as the new furnished holiday let rules are concerned then it is important that any tightening up of the qualifying criteria does not penalise very seasonal locations or prevent new businesses entering the sector.”

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Good News In June Budget for Furnished Holiday Let Owners

Good News In June Budget for Furnished Holiday Let Owners. Today the Chancellor of the Exchequer has set out his Budget. The measures announced will reduce the deficit, introduce a fairer tax system, and encourage an enterprise and growth agenda in the UK.

The Budget 2009 proposal to repeal the special tax rules for furnished holiday lettings will not be implemented. Instead, the Government will consult over the summer on an alternative proposal to ensure the tax treatment of holiday lettings meets EU legal requirements in a fiscally responsible way, which does not penalise UK businesses, by changing the eligibility thresholds and restricting the use of loss relief.

Nick Braund of taxcafe.co.uk commented, “The Chancellor’s decision to reinstate the previous rules for furnished holiday lettings is a tremendous boost for all those hard working owners of holiday properties. Furnished holiday lets will once again be one of the most tax efficient forms of property investment, with preferential income tax and capital gains tax treatment. All of the tax reliefs enjoyed by FHL owners are fully deserved when once considers the important contribution this sector makes to the economy”. 

You may be interested in reading HM Revenue & Customs – Furnished Holiday Lettings – Q & A here

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Holiday Home Insurance – cover for evicting “Squatters”

Holiday Home Insurance – cover for evicting “Squatters”. Thankfully the risk of squatters occupying well managed holiday cottages marketed at a fair rate to ensure high occupancy throughout the year is slim. However with problems surrounding the supply of affordable housing in rural and coastal areas the threat is ever present. Not all holiday home insurance policies are the same and certainly do not offer equal value for money.

Boshers holiday home insurance policy has a bespoke Legal Expenses section arranged by Ecclesiastical with DAS Legal Expenses Insurance Company Limited. Our policyholders benefit from a bespoke holiday let section. DAS will negotiate for policyholders legal rights to evict anyone in their property who does not have their permission to be there but not including claims arising from or relating to a lease of land or buildings of more than 56 days.“Squatting” is not a legal term and when a holiday home is taken over for a short period, the legal position is usually simple: the owner can obtain an eviction order.

However, the process can be dragged out by technicalities and end up taking time and treasure to sort out.

Under section 6 of the Criminal Law Act 1977 it is a criminal offence to use violence or a threat of violence to gain entry to a holiday home if someone, such as a squatter, is present. But it is not a criminal offence to go in yourself, if you do it peacefully, or to break back in and change the locks if no one is there. That is why squatters lock doors and keep one person in at all times.

Different rules apply if squatters move into a holiday home that is occupied. In that case, the holiday home owner can force a way in or the police can evict the squatters. However, the police can be reluctant to act. Our clients benefit from comprehensive cover and peace of mind when insuring their furnished holiday lets with our specialist Holiday Home Insurance contract.
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Running a Holiday Let is not always plain sailing

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Running a Holiday Let is not always plain sailing

Running a Holiday Let is not always plain sailing. Owners should consider their Holiday Home Insurance provider wisely.

By choosing to partner with Boshers as your broker and Ecclesiastical Insurance as your underwriter, you will benefit from the following:

Peace of Mind – we have worked closely with our Holiday Home Insurance underwriter Ecclesiastical, holiday letting agents and owners for two decades to create a comprehensive insurance policy specifically designed to meet the needs of discerning furnished holiday let owners.

Quality – Together with Ecclesiastical we share a commitment to bring you a quality holiday home insurance policy with highest possible standards of service.

Running a Holiday Let is not always plain sailingPersonal Service – Whether we are advising you on your holiday home insurance during business hours or you are dealing with Ecclesiastical 24/7/365 regarding a claim, you will talk to a real person not a machine.
Fair Treatment – We share with Ecclesiastical a philosophy to treat each customer the way we would like to be treated ourselves: with integrity, empathy, promptness, fairness and expertise.

Financial Strength – As one of the largest British Owned Insurers with group assets of over £1billion and net assets of over £200m our Holiday Home Insurance underwriter Ecclesiastical have a Standard & Poor’s A- rating. At the time this was awarded in April 2013 they maintained a stable outlook for the company. In December 2012, A M Best affirmed their A (excellent) rating. Visit www.boshers.co.uk for more information.

Running a Holiday Let is not always plain sailing

As running a holiday let is not always plain sailing holiday home owners will also find the links below of interest:

For Self-Catering holiday cottage owners in Scotland, the Scottish Government has produced the following:

You may also find the following posts for holiday home owners of interest:

Follow this link for posts similar to Holiday Let Insurance for your annexe other useful resources for holiday home owners

For further information on UK holiday home insurance visit the website page most relevant to you:

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Tax reliefs on Furnished Holiday Lettings – unexpected bonus for UK holiday home owners

Tax reliefs on Furnished Holiday Lettings – unexpected bonus for UK holiday home owners. According to various articles in the press, the Government has dropped the removal of tax relief on Furnished Holiday Lettings. This was one of several tax increases in the Budget, due to be enacted before Parliament was dissolved prior to the General Election on the 6th May.
The tax increases were abandoned after negotiations to fast-track the Finance Act through Parliament ahead of the General Election on the 6th May. The Conservatives had refused to sanction the fast-tracking of the legislation – unless these changes were dropped.
This will at least buy more time for political lobbying against these potentially damaging tax changes and meanwhile offers a welcome reprieve for Furnished Holiday Let Owners. 

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2010 Budget | Furnished Holiday Letting (FHL)

2010 Budget | Furnished Holiday Letting (FHL). As announced last year, the tax advantages of Furnished Holiday Letting businesses will be withdrawn with effect from 6th April 2010. Income from FHL will be treated in the same way as income from other property rents. This means there will be less advantageous offset of losses and a number of Capital Gains Tax (CGT) reliefs will no longer be available. However according to our accountants, it appears that Entrepreneurs’ Relief will apply to disposals of a FHL property within 3 years of 5th April 2010, potentially reducing the effective rate of CGT on up to £2m of gains from 18% to 10%.

Furnished Holiday Lets | Your Emergency Tax Planning Guide
Boshers Holiday Home Insurance clients and friends can follow the link to purchase a copy of this invaluable guide and receive a 30% discount off of the RRP of £24.95 + £1.95 postage and packing. Simply use the discount code BOSHERS which is case sensitive. Please note that Boshers Ltd have no connection with the Tax Cafe and will not receive any remuneration from the sale of their publications, instead this is passed on as a saving to you. This book will be of interest to Holiday Home Owners and may just throw up some interesting points to discuss with your professional advisers.

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Key Safe holiday home

You, Your Holiday Home, Your Holiday Home Insurance and Key Safes

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Security precautions when installing Key Safes at your holiday home. You, your holiday home, your holiday home insurance and key safes Firstly check with your holiday home insurance broker that the use of Key Safes is acceptable. There may be specific warranties that you will need to adhere to in order not to invalidate your holiday home insurance cover.

Key Safes - holiday home secure

The use of a good quality Key Safe to help manage access to your property by guests on arrival is by far the best alternative to leaving a key under the doormat or a nearby flower pot! By taking a few sensible precautions, the use of a Key Safe at your holiday home will enhance your guests holiday experience and make life easier for you and your holiday letting agent.

Guidance for holiday home owners on the use of key safes

  1. Purchase the best quality Key Safe that your budget allows, preferably with a 5 – 7 digit code
  2. Where possible locate your Key Safe out of sight
  3. During installation of your Key Safe ensure that it is bolted firmly into brick or stone, avoiding soft mortar
  4. Arrange with your housekeeper to leave a door key in the Key Safe no more than 24 hours before the guests are due to arrive
  5. Encourage your guests not to leave Keys in the Key Safe during their stay
  6. Have your housekeeper remove the keys from the Key Safe within 24 hours of the guests departure, unless new guests are arriving
  7. Ask your housekeeper to change the 5 -7 digit code between lets, to a new code which you or your agent can inform your next guests of
  8. Do not allow keys to be left permanently in a Key Safe during periods of unoccupancy

For further information on UK holiday home insurance visit the website page most relevant to you:

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