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Spring Budget 2023: What it means for holiday home owners

In the news

We have put together a summary of the Spring Budget 2023 announced by the Chancellor this week and what it means for existing holiday home owners as well as those looking to make an investment.

Pensions

The Chancellor has announced an increase in the annual contributions allowance from £40,000 to £60,000. The government will also increase the Money Purchase allowance from £4,000 to £10,000.

Income from furnished holiday lets counts as relevant earnings and therefore attracts tax relief.  

The pension Lifetime Allowance currently £1,073,100 will be abolished from next month.

 

 

Business Rates

Full expensing will be introduced from 1 April 2023 until 31 March 2026.  This benefit is only available to companies subject to Corporation tax.

The Annual Investment Allowance (‘AIA’) continues to be available to those qualifying as a Furnished Holiday Let.  The AIA 100% first-year relief limit will remain at £1M.

 

General

More information on Furnished Holiday Let tax rules can be found here.

 

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