Benefits to Owning a Furnished Holiday Lodge

Owning a Furnished Holiday Home Offer’s Key Benefits Against BTL

The UK holiday tourism has experienced a prosperous summer season contributed to recent challenges on overseas travel boosting demand on the already upgrowing trend of staycations. By 2025 UK tourism is on track to triple its current worth to £250 billion and owning property in this sector comes with some key benefits that include;

No Stamp Duty. Remove the additional expense applied to standard residential property in order to maximise your rental returns.

No Council Tax. As the property is classed as self-catering accommodation and not residential.

Furnished Holiday Let Tax Breaks. Holiday Lodges qualify as an asset of a FHL business which qualifies for capital allowances. If a lodge is used as a furnished holiday let business, a large proportion of the cost of the lodge is eligible for capital allowances. Capital allowances can be offset against income and reduce a persons taxable income each year. We advise that you speak to an independent accountant for more information on how this fits with your personal profile.

High Rental Returns. Furnished Holiday Lodge on average can generate between £35,000 to £45,000 per annum at an occupancy rate of 80%. Operational Costs including service charges, marketing platforms, and maintenance equates to circa 54% of the gross rent. After all costs lodges can net around £16,000 to £21,000 per annum.
Some companies offer a full management agreement where a fixed income from 8% can be offered. This means all you need to think about is when you are booking your next holiday !