- Holiday lets are subject to a standard VAT rate of 20 percent, unlike residential lettings which are exempt.
- Holiday accommodation includes various types of properties advertised for holiday or leisure use.
- Off-season lettings can be exempt from VAT if rented as residential accommodation for over 28 days in a seasonal area.
- Businesses exceeding the VAT registration threshold must register for VAT, affecting income or fees.
- VAT registration allows recovery of VAT on related costs like maintenance and advertising.
- Using a holiday letting agent does not avoid standard VAT rating.
- Property sales are usually exempt, but new dwellings may qualify for zero rating or standard rating if under three years old.
- Sales may qualify as VAT free under Transfer Of A Going Concern, affecting VAT chargeability and input tax clawback.
- Overseas property lets have specific tax risks.
Source: marcusward.co
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
