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Renting out for holidays- worth it?


vsmith88

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The other thing to consider is that of the boat is not your main residence (you are not living on it at the same time as the 'renters' then your income becomes subject to income tax.

Last year ANBN came to an arrangement  with HMRC that HMRC would wipe off all tax debt from ABNB members on payment of £1.8 million and a list of all ABNB members and their income, on an ongoing basis.

 

It was agreed, ABNB paid over the £1.8million and now all ABNB operators details & income is regularly passed onto HMRC.

 

As you have said your boat will not your main residence and you need the income to make the project viable it is classed as a buy-to-let,  then consider :

 

 

Airbnb Hosting in Buy-to-let property

If you are hosting your Airbnb guests in separate house/flat (i.e. not within your main residence), you will not qualify for the rent-a-room scheme. Unfortunately, you will not get a tax-free allowance of £7,500.

In this case, you will be taxed on your rental profits like any other business. For example, suppose your total rental receipts in the tax year are £15,000, and you incurred total allowable expenses (such as gas, electricity, insurance, repairs, etc.) of £5,000, then your rental profits is £10,000, and you will pay tax on £10,000 based on your income tax rate.

However, please be aware that there is a severe restriction of deduction of interest as an expense from tax year 2017/18 if you don’t qualify as Furnished Holiday Lettings as explained below. Refer to our detailed guide on interest relief restriction on this to find out more.

Will Airbnb Hosting qualify as ‘Furnished Holiday Letting (FHL)’ under UK tax law?

If you own a buy-to-let property which you let via Airbnb throughout the year, then you will most likely qualify for Furnished Holiday Letting.

To be eligible as Furnished Holiday Letting, you need to fulfil all of the following conditions:

  •  
    The property must be available for letting as furnished holiday accommodation for at least 210 days in a tax year (or during the relevant 12 month period)
  •  
    The property should be actually let for at least 105 days in the year
  •  
    The property needs to be furnished (i.e. property must have sufficient furniture for usual occupation)
  •  
    The property must be situated in the UK or the European Economic Area (EEA)
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12 minutes ago, Alan de Enfield said:

The property should be actually let for at least 105 days in the year

I suspect that is the killer requirement for a number of property owners. 105 days equates to 15 weeks full time letting, or 35 3-night short breaks or every weekend of the year (2 nights). Unless your property (or boat) is in a high demand area or particularly attractive I think you might struggle.

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3 hours ago, Alan de Enfield said:

Last year ANBN came to an arrangement  with HMRC that HMRC would wipe off all tax debt from ABNB members on payment of £1.8 million and a list of all ABNB members and their income, on an ongoing basis.

 

It was agreed, ABNB paid over the £1.8million and now all ABNB operators details & income is regularly passed onto HMRC.

 

 

 

As a courtesy to ABNB Boat Brokerage (https://www.abnb.co.uk/), the well-regarded narrowboat sales and brokerage company, I think it would be good if you stopped using "ABNB" as shorthand for AirBnB. Your posts mentioning AirBnB read as though you mean ABNB.co.uk.

 

 

Edited by MtB
Grammar
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3 hours ago, Alan de Enfield said:

 

Last year ANBN came to an arrangement  with HMRC that HMRC would wipe off all tax debt from ABNB members on payment of £1.8 million and a list of all ABNB members and their income, on an ongoing basis.

 

It was agreed, ABNB paid over the £1.8million and now all ABNB operators details & income is regularly passed onto HMRC.

 

AirBnB both paid an additional £1.8m in Corporation Tax and agreed to co-operate with passing information on the income of its members. 

 

But I don't think it wiped out all tax due from its members.

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Wasn’t there a time that Anglo Welsh used to have boats built and bought by owners under Anglo Welsh specs then rented out by Anglo Welsh that then reverted to the original owner after a certain time? 

 

It could possibly be ABC, that was in the early  2000s. I think similar happens with some holiday properties in France especially ski accommodation?
It  isn’t the not too common broken down engine that would be the bother but the “my lightbulb over the bed isn’t working” when moored up  a mile from a decent road at 10.30 pm that maybe an irritant. 

Someone I know used to allow the boatyard they mored at to hire their boat out when all else was booked out, one lot of  hirers cut a corner on the Avon, struck a submerged tree and sank their boat☹️
 

For reasons that escape me they stopped hiring after that

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8 hours ago, Stroudwater1 said:

Wasn’t there a time that Anglo Welsh used to have boats built and bought by owners under Anglo Welsh specs then rented out by Anglo Welsh that then reverted to the original owner after a certain time? 

 

It could possibly be ABC, that was in the early  2000s. I think similar happens with some holiday properties in France especially ski accommodation?
It  isn’t the not too common broken down engine that would be the bother but the “my lightbulb over the bed isn’t working” when moored up  a mile from a decent road at 10.30 pm that maybe an irritant. 

Someone I know used to allow the boatyard they mored at to hire their boat out when all else was booked out, one lot of  hirers cut a corner on the Avon, struck a submerged tree and sank their boat☹️
 

For reasons that escape me they stopped hiring after that

Aqua Narrowboats still do exactly the 'owners build for hire' model referred to. Nice boats to hire too... 😉

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When at West Stockwith last weekend the hire boat owners were preparing a boat after hire.  It seemed to take took the couple the full day including cleaning , holding tank pump out and a training session for the new customers.

I think there could be easier ways to make money,

Probably no easier way of applying wear and tear to your boat.

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On 19/05/2022 at 07:41, vsmith88 said:

[£]...k on a good boat, ... and make sure it’s a sound investment. 

It's a boat.

So it's not a "sound investment"

Edited by PeterScott
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I think that Mr / Mrs Smith have gone off in a huff now their dreaam bubble has been burst - no comments from them accepting or questioning any of the posts, but they have been back on and read the thread.

 

Never a "thank you you have saved us £50k and years of heartache and problems"

 

It's always a case of "if you don't really want to hear the answer, don't ask the question"

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4 hours ago, SteveLevis said:

..your first problem is that in the current climate you will not get a "good boat" for your intended budget, and the idea goes rapidly down hill from there...

 

Indeed. Last year I increased the insured value of my boat to take into.account the prices increases of the last couple of years.

 

Last week I had the BSC examination. The examiner (who is also a surveyor) suggested that my 2007 boat was still undervalued by £15k.

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20 hours ago, Alan de Enfield said:

I think that Mr / Mrs Smith have gone off in a huff now their dreaam bubble has been burst - no comments from them accepting or questioning any of the posts, but they have been back on and read the thread.

 

 

How do you know they've been back on and read the thread? Is that a feature of the forum I'm unaware of? Can you see when someone was last on from their profile? I can't say I've ever been interested enough in other members browsing habits to care! 🤣

Edited by blackrose
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8 minutes ago, Alan de Enfield said:

 

Yes.

 

 

You don't even have to visit their profile to see when any given poster last logged into CWF. Just hover the mouse pointer over their profile name and a box pops up telling you.

 

 

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4 hours ago, MtB said:

 

 

You don't even have to visit their profile to see when any given poster last logged into CWF. Just hover the mouse pointer over their profile name and a box pops up telling you.

 

 

Unless disabled like many are. ;)

Edited by mrsmelly
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