Nine in 10 holiday let owners to raise prices ahead of tax raid

Is Hunt’s tax raid forcing you to raise prices on your holiday let? Email money@telegraph.co.uk to share your experience. Nine in 10 holiday let owners say they will increase the price of bookings ahead of Jeremy Hunt’s £300m tax raid on second homes. From April next year, holiday homeowners in England will no longer be able to offset their mortgage interest payments from profits and will lose generous tax perks on capital gains. Higher rate taxpayers face the prospect of paying 24pc tax on profits from a sale rather than the 10pc they currently benefit from via Business Asset Disposal Relief. The average annual income for a three-bed holiday let is £24,500 and £16,300 for a one-bed property, according to letting platform Sykes Holiday Cottages, but profits are due to take a hit thanks to the Chancellor’s tax overhaul. Calculations by wealth planning firm Quilter show that holiday homeowners could be £3,000 a year worse off. The figures are based on a property purchase price of £350,000, with an annual mortgage rate of 4.5pc and £20,000 rental income. In a bid to soften the impact of the greater tax burden, 87pc are planning to increase the cost of bookings, according...

Read more