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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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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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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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“Be Prepared For The Thaw”, Boshers advise their holiday home insurance clients.

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“Be Prepared For The Thaw”, Boshers advise their holiday home insurance clients. We are here and ready to help.


To make a claim, call us Monday to Friday 8.30-5pm on 01237 429444 or Ecclesiastical on 0845 603 8381, 24 hours a day, 7 days a week
The cost and personal inconvenience caused by a burst pipe claim can be considerable with claims often running into many thousands of pounds. Just a small fracture can release hundreds of gallons of water into your property; damaging carpets, walls, ceilings and also personal items.
The chance of suffering these losses can be reduced and we would recommend taking the following steps to do this:

General tips:

Check the location of your stopcock.

Check whether your boiler needs servicing.

Check the insulation on your water pipes and cold water tank, those in the attic or other vulnerable spaces should be lagged or similarly protected.

Modern methods of insulation can be so effective in keeping heat within your property that attics can become very cold, this could cause a pipe to freeze. We therefore recommend you keep your loft hatch open if you have pipes in the attic to keep this area warm.

Keep doors between heated and unheated rooms open to allow warm air to circulate.

Keep cupboard doors open below sinks to allow warm air to circulate around the plumbing.

Seal any holes or gaps that may be letting cold air into your property.

Make sure any valleys and gulley’s on your roof are kept clear and free from debris.

Make sure any external taps are turned off and disconnect any hoses.

If you discover a frozen pipe don’t wait for it to burst. Turn off your water supply and then slowly thaw the affected pipe by introducing gentle heat to the area e.g. hair dryer, space heater, hot water bottle. DO NOT attempt to thaw the pipe with a blow torch or other open flame such as a cigarette lighter or matches.


What if you are going away or the property will be unoccupied?

Keep your property heated to reduce the chance of a pipe freezing.

If you are going away for an extended break drain and shut off your water system.

Ask somebody to check on your property daily. This may not prevent a loss but early identification of an escape can help reduce the ultimate cost.


Ensure you have complied with any unoccupancy conditions or warranties listed in your policy. If you need any clarification call Boshers on 01237 429444.


What if the worst happens?


Turn off the water supply at the stopcock. This should prevent any more water escaping into your property.


Where practical try and catch any excess water in a bucket or other container.

Do not use any electrics if you believe these may have been affected by the escaping water. You will need to have these checked by a professional electrician.


Call Boshers Monday to Friday 8.30-5pm or Ecclesiastical on 0845 603 8381 (24/7) immediately to report your claim. Ecclesiastical have to a wide range of specialists who can assist with the drying out and clean up of your property and also the necessary repairs or replacement.


We are here and ready to help.

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Holiday Let Restoration Projects Sought By Holiday Cottages Magazine

Holiday Let Restoration Projects Sought By Holiday Cottages Magazine. Are you thinking about turning an old barn, brewery or bakery into a holiday let? Or any other pre-1945 building? If so, and you would like free advice on the project, read on.
In conjunction with Robert Hill of the Historic Building Advisory Service, Holiday Villas and Cottages are planning a new ‘house doctor’ series that welcomes questions from readers about any aspect of planning, building or related matters, and which may interest other readers. In addition Holiday Villas and Cottages are looking for one proposal where an owner is considering a conversion or restoration project that could be used as a case study. If you have either a particular question or a property that has an interesting background and needs expert advice and opinion, please e-mail details and images to info@merrickspublishing quoting ref: Boshers Blog. Should you require advice on holiday home insurance in connection with a conversation please contact Boshers Ltd who will be happy to advise you.  
Click this link to read an article about Historic Holiday Homes in a recent issue of Holiday Villas And Cottages Magazine.
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Reduce Holiday Home Insurance Claims

Insulate Your Water Pipes Against the Big Freeze

Rugging up is essential for both people and water pipes during this icy snap, with pipes likely to freeze as temperatures continue to plummet. Boshers Holiday Home Insurance Specialists offer the following advice about fixing frozen pipes in your holiday homes, but with a little preventative investment people can avoid major costly repairs in the future. And it’s not too late to act, with more wintry weather predicted in coming months now is the time to take action.

The biggest problem with frozen pipes is not the initial loss of water supply but the subsequent thaw. Compared to water, ice needs more space – so when water freezes it expands, which means a frozen pipe often leads to a burst pipe and flooding.

• First, check the pipes for any signs of splitting. If you spot any damage, call a plumber. If you don’t get the pipes repaired now, you might suffer from flooding once the water thaws.

• If there are no splits, turn on the cold water tap nearest your internal stop tap (often located under the kitchen sink) and turn it to a position where the water flow would normally be slow.

• Turn off the stop tap to cut the water supply and use a gentle heat source, such as a hair dryer or electric fan heater, to gently direct the heat around the internal stop tap until the pipe thaws.

•Occasionally turning the stop tap completely on and off helps clear any blockages.

Do not use electricity, or a blow torch or naked flame where there is a risk of water escaping. Also do not light the boiler to thaw out a hot water or central heating system. If a pipe bursts, turn off the stop tap and leave a tap on to allow the thawed water to drain out. Remember to take the plug out of the sink and contact a qualified plumber.

As always, prevention is better than cure and there are a number of things that can be done to protect water pipes from the cold weather.

• Fix any dripping taps or overflows, a gentle trickle of water can freeze and block the overflow or waste pipe.

• Check that your internal stop tap is working by opening and closing it

• Ensure that pipes in cold and draughty areas like roof spaces, outbuildings and garages are well insulated with approved lagging materials. If this isn’t something you are able to do yourself, then a registered plumber can do this.

• Use waterproof insulation on all pipes exposed to the elements and ensure all lagging is kept dry. Wet lagging is useless.

• Insulate water tanks by covering them around and above but not underneath if the tank is in the roof or loft. Rising warm air from the home below will help prevent the water from freezing.

• Remember to insulate any outside taps or turn them off at the internal stop tap and leave the outside tap open to drain it.

• Keep windows closed and stop draughts near pipes in unheated areas, but remember you must provide ventilation for boilers, gas fires etc.

• Leave central heating on low or a frost-protect setting overnight, or when away for a few days.

• Ensure your central heating system is serviced regularly.

• Keep your plumber’s contact details handy in case of an emergency.

Remember if you do have a burst pipe, take action to reduce the damage to your holiday home and it’s content’s immediately, then report the incident to your holiday home insurer or broker in order as soon as possible. Claim procedures and contact details are to be found in your holiday home insurance policy document.

You may also find the following article of interest:

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

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Pre – Budget Report 2009 | Furnished Holiday Lets | Rules To Be Withdrawn

The Chancellor has confirmed that the Furnished Holiday Lettings Rules will be withdrawn from 2010/11. The Chancellor has confirmed that the Furnished Holiday Lettings Rules will be withdrawn from 2010/11. Self-catering industry bodies continue to lobby the government. In the meantime Boshers Holiday Home Insurance clients can purchase a copy of Furnished Holiday Lets – your Emergency Tax Planning Guide at a 30% discount via a link at boshers.co.uk/articles   
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Holiday Home Owners Beware – Jack Frost Is Back!

Holiday Homes and Holiday Cottages in the UK can be particularly susceptible to water damage caused by burst pipes, as they often lay empty for days at a time during the low season.

According to the weather forecasters, tonight will bring the first widespread frost of this winter. Please ensure that you have taken preventative measures to reduce the risk of water damage due to frozen pipes bursting. Draining the entire water and heating system during spells of unoccupancy is one method. Alternatively leave your heating on at a level sufficient to prevent your pipes from freezing and ensuring that the pipes in your attic have sufficient lagging, coupled with leaving your loft hatch open to allow circulation of warm air in your loft space. 

Water damage as a result of burst pipes can be very traumatic and upsetting, apart from being a complete inconvenience for owners, guests and letting agents. Many second home owners suffered damage during the exceptionally cold spells last January & February. The exceptional weather caused a sharp increase in holiday home insurance claims in the early part of 2009. Whilst those that had a quality holiday home insurance policy will have had their damaged properties and contents repaired and replaced as appropriate and been recompensed for loss of income during the period which the properties were being renovated. I am sure that if questioned they would rather have not suffered the damage and inconvenience in the first place. 

Sometimes these events are unforeseen, after all that’s why we purchase insurance. Although often with careful planning, good housekeeping, due care and common sense these occurrances can at least be minimised. So beware of Jack Frost, take action and help to keep your holiday home insurance premiums as they are, good value for money!            

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UK Holiday Home Owner Winter Maintenance Checklist

Boshers advises UK holiday home owners to use quieter periods, such as the Winter months to carry out essential maintenance checks so their properties are protected from inclement weather and in tip top order for the following letting season.


Mark Lavington, says: “Many weather related insurance claims could be avoided if holiday home owners were to give their holiday letting properties a winter health check before the worst of the weather hits”. Furthermore there’s a `duty of care’ for owners to ensure that their guests’ safety has been considered.”



The Boshers holiday home insurance team have compiled a `Winter Maintenance Checklist for holiday Home Owners’ as a useful aid. A free copy can be downloaded from www.boshers.co.uk/holiday-home-insurance or requested by phoning 01237 429444 or emailing cottages@boshers.co.uk  

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More Brits Stay At Home For Their Hols

More Britons opted for “staycations” in the UK in first half of the year, providing a much needed boost for domestic tourism.

The number of holidays taken in England by UK residents rose by 14% compared to the same period last year.

That amounted to 2.6 million more trips and more than 9.1 million extra nights holiday, according to VisitEngland.

The recession and the falling value of the pound against sterling all appeared to persuade people to stay at home rather than head abroad.
But it wasn’t all good news.
With firms cutting costs, business travel fell, so the amount spent on trips of all kinds fell 1% in the first half of the year.
VisitEngland chief executive James Berresford said: ‘England is back in fashion as Brits are rediscovering the diversity and appeal of the English holiday.

“Clearly there are businesses out there still suffering, particularly those in the conference and events market so we are certainly not out of the woods.”

Predictions from weathermen of a “barbecue summer” may boost figures further for the second half of the year, although the fact that the good weather never actually arrived may dent the gains.

The “staycation” phenomenon looks likely to continue into next year – UK self-catering operator Hoseasons said advanced bookings for 2010 were already up by 61%.

Hoseasons chief executive Richard Carrick said: “The last 10 years it has been a challenge for companies to adapt to a weak euro, low-cost flights and last minute booking trends. 2009 has given us the chance to turn the tide in favour of British breaks.”

Meanwhile, Bournemouth has been voted the most popular resort for staycationers.

The Dorset town came out top of 66 popular UK getaways in a survey from Virgin Money Travel Insurance aimed at finding the best family holiday destinations at home.

Loch Ness, home of the Loch Ness monster, was voted the worst, partly because of the terrible Scottish weather.

Other south coast towns that scored highly included Brighton and Portsmouth in second and third, Scarborough fourth and London fifth.

Car parts and bicycle chain Halfords also said it had benefited from the staycation with a big rise in tent and bike sales.

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