Many second-home owners 'don't realise IHT benefits of letting'

Date:Wednesday 31st December 2008
Author: Max Freedman

There are inheritance tax (IHT) benefits to letting out a second home that many people may be unaware of, an expert has said.

Tony Briscoe, director of DHC Accounting, claimed that if people put their second properties up for rent, they will be looked upon as businesses and as such will be exempt from IHT.

He stated that this applies "as long as you've owned [the property] for two years".

"There are certain things you have to do but by and large, any holiday let property should qualify," Mr Briscoe remarked.

Despite this, a lot of people will probably not know that this exemption exists, he suggested.

Approximately 55 per cent of people with second homes are looking to enter the holiday lettings market in the near future, according to research from the Holiday Cottages Group.

The current economic climate was suggested as the main reason behind the new trend.