In this interview, Mark and Zoe discuss the financial planning considerations for buying a furnished holiday let (HL). Zoe is a Chartered Financial planner with lots of experience in helping people navigate their finances when it comes to buying a HL. She starts by defining what an HL is and the criteria that must be met for it to qualify as a trading HL for tax purposes. Zoe goes on to discuss the tax benefits of owning an HL, such as capital allowances, mortgage interest relief, and business rates. They also talk about the potential disadvantages of owning an HL, such as the higher level of management required and the risk of void periods. Mark and Zoe then discuss the case study of Laura and Tom, a couple who are considering buying an HL. They discuss the couple's financial situation and their goals for the HL. They also discuss the tax implications of the purchase for the couple. Mark and Zoe conclude the interview by emphasizing the importance of getting professional advice before buying an HL. They recommend working with a chartered financial planner who can help you assess your individual circumstances and make the best decision for you. Here are some key takeaways from the interview: Furnished holiday lets can offer a number of tax benefits, such as capital allowances, mortgage interest relief, and business rates. However, there are also some potential disadvantages to owning an HL, such as the higher level of management required and the risk of void periods. As always, remember, it's really important to get professional advice before buying an HL to ensure that it is the right investment for you.
In this episode of the podcast, we're talking about financial planning tips on buying a furnished holiday let. Our guest is Zoe, a chartered financial planner.
Zoe starts by defining what we mean by a furnished holiday let. She explains that it's a property in the UK that is furnished, rented out with the intention of making a profit, and meets the occupancy conditions. These conditions include being available to let for 210 days per year and being let out for at least 105 days per year.
Zoe then talks about the tax benefits of owning a furnished holiday let. She explains that you can claim capital allowances, mortgage interest relief, and business rates relief. You can also apportion the profits of the business to the most tax-efficient person, which can be beneficial if one person in the partnership is a higher rate taxpayer.
Zoe also discusses the risks of owning a furnished holiday let. She mentions that it can be more difficult to manage than a traditional buy-to-let property, and there is always the risk of void periods.
Finally, Zoe talks about the financial planning considerations that you need to take into account before buying a furnished holiday let. She recommends working with a financial advisor to make sure that you're making the right decision for your individual circumstances.
Here are some key takeaways from the interview:
If you're thinking about buying a furnished holiday let, I encourage you to listen to this episode of the podcast. Zoe provides a wealth of valuable information that can help you make an informed decision.
Financial planning, tips on buying your HL
Morning, good morning, Zoe. Good I'm good, my love. I'm good. I'm good.
So, I've got my friend Zoe. Zoe and I have known each other quite a long time.
And, I thought it would be a good idea to introduce Zoe into the podcast we do because Zoe is a chartered financial planner.
I don't even know what that is.
So,, I'm going to get her to tell us what that is in a minute and where she is and tell us a little bit about herself.
But Zoe can help our listeners who are in various stages of their life with regard to either trying to acquire assets or trying to dispose of assets. And So,, I would really stress, listeners that I can't talk or give advice or give opinion about such matters.
And just So,, you know, for all compliance purposes. Really worth saying that.
So,, you know, people often ask me, should I do this? Shouldn't I do this? What are the tax breaks, et cetera, et cetera. And I can't do it. I just, you know, I'm not allowed to do it. I don't have the badges. Zoe's got more than the badges.
So,, I'm going to hand over to Zoe for a second and just say, tell us about you and what you're hoping to offer today.
Oh, thank you. That's lovely. Yeah, So, as I said, I am a Chartered Financial Planner, So, my role is very much to do with helping clients kind of navigate all these different life changes and make the most of what they've got, whether that is investment property or pensions that have been the paperwork's in a drawer So,mewhere, or inheritance tax planning and how you kind of, pass your wealth to your family.
So,, my remit is to kind of all of the complicated rules and all of the complex things that crop up and put it into So,me So,rt of structure So, they can make the most of that.
So,, and So, is it, is that an IFA, is that the same thing?
It's all slightly different terminology. So,, chartered is like a, an accreditation.
There's a basic diploma, which is just six exams that you get to So,rt of do the basic advising role, if you like -- and then as a financial adviSo,r, you can decide to take a more, a next step. So,, on top of that basics, I've alSo,, I've done 17 exams all in all covering everything from, oh, I don't know, later life, equity release, long term care, right the way through to a master's Degree in finance and a few advanced more technical tax and technical for trusts and that kind of work as well.
So, really a very broad scope of everything.
Financial really brilliant. So, this girl knows what she's talking about. So, I, I think a, I think an IFA is like a Volkswagen Golf, and I think a chart of financial planner is like a Porsche, the latest model of the Porsche. That's what I think anyway. Zoe, fantastic. Well, we're going to keep this light, ladies and gents, because I want you to listen to the end. And I know that So,metimes, you know, financial planning and stuff and stuff can be very uninteresting. So,, we're trying to keep it really interesting.
I've got, Zoe, I've got a couple of clients who've just recently asked me So,me questions. And I So,rt of wrote these down because I thought this would be ideal for you to try and put So,me meat on the bone as it were. So,, I'm going to, first of all, tell you about Laura and Tom. Now, Laura and Tom are in their thirties.
They're married and they're going places. They're good. They got it So,rted. They got good careers. Laura's not working. She's, I know she told me the other day, she's got three children, I think now, and they're really So,rt of taking her time and energy but loving them, obviously, she kind of went back to work part time.
Tom is the owner. Tom is, self-employed IT. You know, the thing, 80 made up names, £80-90,000 pounds a year doing well. Mortgage is not too big. So,, no debts. They're doing good. They want to think about the future, which is the music to your ears. I know because lots of people don't think about the future.
They want to retire early and they don't want to become grandparents and then, you know, just shuffle off the mortal coil as it were and not enjoy their grandchildren. So, very sensible getting all the things right. Now here's where we get involved Zoe, because this is for you and for me.
They rang me because they've seen a second home they want to buy and rent out. The good old holiday cottage. They said to me, Mark, is it a good idea? And then they said, Mark, tell us about all the advantages and stuff. And that's where it gets a little tricky for me, because I have to say, look, I can tell you all about the mortgage.
I can tell you the color, the shape, the size of the mortgage, but I can't tell you about the stuff you want to know. So, this is when I got in touch with you. We had a little chat and we said, let's talk about it. Let's tell the world about it. That's So,. Zoe, what do you think? Well, isn't it fascinating? I think we should start probably by just, , defining for the listeners what we're talking about when we talk about furnished holiday lets.
So,, for the purpose of this podcast, when we're talking about qualifying furnished holiday lets for the HMRC on all of the different tax reels, we're talking about properties in the UK that are furnished, that are rented out with an intention to make a profit and that meet the occupancy conditions.
So,, we're talking about it being available to let for 210 days commercial let 105 and it can't be any long stays over 31 months If you can meet those criteria, then you're likely to qualify as a trading furnished holiday Because I’m, So,rry, those are really big nbers
So,, you can get a Google translate my Yorkshire, I think, but no, I'm pulling your leg, but do the nbers because those, those days are really important. I think. Yeah, abSo,lutely. Yeah. So, it has to be available to let for 210. So,, you know, it to be opened for So,me people to holiday and you've got to actually let it out at least 105.
So,, they put these rules in where, because they didn't want people just having second homes and pretending they were furnished house let's to get all the cheeky facts in the news. Isn't it? It's in the news. It really is. Newspapers are saying, do this, make your house a holiday let to avoid paying extra council tax.
Yes, abSo,lutely. Yeah, abSo,lutely. So, that is very much one of the things. So,, if you can meet the criteria, then it's worth doing So, because in the HMRC designs, it transforms your investment property from an investment proposition, a passive investment, income, if you like, from traditional buy to let income into So,mething more akin to a business.
And that's where the real key to the tax differences comes in. So, suddenly it completely changes everything from capital allowances, you're able to put the money into pensions, you get mortgage relief, all of this we're going to talk more about as we go along but capital gains tax, how you can apportion the profits, and council tax versus business rates.
So, like this little slight distinction of meeting these criteria can completely transform. from how the, the money and how, how it all works.
It's part of your financial plan. So, yeah, really, really important stuff here and really, potentially beneficial from a furnished holiday point of view. I think that's really interesting, because actually, from my point of view, a lot of people start the conversation with me saying, we've seen a lovely little cottage overlooking the sea in Horth, you know, wherever.
And So,metimes I think people buy holiday lets with their heart too much. They see themselves living there. And actually, they're not going to live there very much. They're going to spend a little bit of time there. Of course they are. But, you know, they're going to spend So,me time doing So,me maintenance.
They're going to spend So,me time having a maybe a smer break.
I think if I can just come off tangent a little bit, I think I want my customers, my holiday let customers to think of it. And you've already said it, it's a business. It really is a commercial business.
AbSo,lutely. Yeah, I completely agree. And once you So,rt of, you managed to get into that So,rt of mindset, especially this couple you're talking about, this couple So,und like they're really doing it with the future and business in mind.
And So, if they were to come to me and say, look, you know, we want a property, we want it to generate income, but What do we do? Do we go for a traditional landlord, slightly maybe easier to manage, starting to clean it and all of those things? Or do we go for a furniture holiday like where it might be a little bit more onerous, there might be a little bit more to do, but perhaps that might be better for the future.
Then in this case it would be quite likely. So, that a furnished holiday let would be better. So, one of the things she said that was quite interesting he said she hasn't got any earnings. So, where we've got a bit of an imbalance at the moment of income could really play to their advantage in this because with furnished holiday lets that qualify you can use Something called a portion relief.
So, this is where you can place the income into whoever's income tube -- if you like whoever's earnings pile – that is the most tax efficient and you can't do this with traditional buy to let properties. If you own 50% each, you have to take 50% of the income each. In furnished holiday lets, if you were 50 50 in a business, but one of you is a high rate taxpayer and will pay 40% on profits, and one of you is not earning, then it's an absolute no brainer that it will be much more tax efficient income to fall into a furnished holiday let that you can do that apportionment with.
So, the first thing, you know, that would be a big point for them. And presumably, Zoe, an accountant should be telling the people that, shouldn't they? Oh, absolutely. Good accountants are absolutely worth their weight in gold. Certainly not an accountant. I'm much more a holistic financial planner, you know, big picture stuff but yeah, a good accountant, particularly with furnished holiday lights, will just, you know, save you endless untold amounts. I spoke to a client the other day and I said to them, you've got, you've got an accountant to help you with this, haven't you? Oh yeah, yeah. My sister's my bookkeeper. No, no, no, no. I squealed. No, no, no. You must, your sister's lovely, but you must, you must use a really an accountant that knows about holiday lets as well, because Some accountants are very good at. You know, I don't know, entrepreneurs relief or selling a business or something. They may not know about holiday lets. So, yeah, it is. It's a different proposition altogether. And there are lots of things, especially even just between, like we say, between the traditional landlord properties and by select properties, that the realm of tax is completely different. So, you do need someone who knows what they're doing. And also, who will want to advise you on things.
You know, you can't do that. You can't. Put through your mileage, you know, whatever you need someone who's happy to tell you those things. So, okay. So, to recap, then we've talked about making sure that the ownership is correct in terms of where, where the money is going to come , where the, where the earnings are. Yeah, So, the first thing with that young couple, yeah, certainly let's look at how we're going to portion the tax, that makes a lot of sense. We also, have a bit of a kind of a later life objective here, So, another key point for them is what they're going to do with the income. So, it sounds like they've got quite a healthy household income and they've also, got little debt, So,...
Again, you know, we would talk to them more, but if this income from this property was almost surplus, you know, and they're talking about saving for the future and having money to retire and all of that, then actually another key distinction here between traditional properties and furnished house delights is that the income is pensionable because it's cost of the business income.
Whereas a traditional vitalised class of investment income, you can't re roll that into a pension. With this and that income, they possibly could. So, theoretically, if we were putting all the income in her name, she could then make a pension contribution, get the full tax relief for that, and shnaffle that away for later in life.
So, really, really tax efficient, and a really good later life plan, too. You like that? Keep going. Oh, Sorry. Yeah. Oh, yeah. So, yeah. Sorry. So,, yeah. Very good. Very tax efficient. sorry. I thought I heard something, very good. Very tax efficient income. Really good to kind of put things away for later life, especially if they're not going to need it now. And actually, it's something that lots of traditional landlords would love to have the opportunity to do because you get to a point where you Sort of, you you put all these plans in place to generate good income and actually, if that income. It's just being taxable and then sitting in your bank account. That is not a very useful use for that. You know, if you can put that aside, get it invested, working hard for the future, gaining tax relief, all of a sudden it's, you can see it's like a Rubik's cube, you know, all these different bits and objectives all start snapping into place.
You go, right, okay, we'll do this. We'll generate income. We'll save the income for later. We've got an asset that's appreciating. If we want to retire early, we can sell it, you know, and suddenly it starts all turning into more of a plan from just a seed of an idea that goes, , maybe we could make some income.
Actually, this couple maybe don't need the income, but they do need a plan and a structure for later life success there. That would be the other thing I would think of for them. And then the final thing, , with lending, of course, talking to a financial lending extraordinaire, when we look at mortgages for these kinds of properties. There's another key distinction here with furnished holiday let's in that a few years ago in landlord world, , they cut the mortgage, relief. So, you used to be able to offset all of your profits and essentially for, high rate taxpayers, you would be able to claim 40% of mortgage interest payments offset against your profits, that was then, So, it meant that for traditional landlords that were already in the space back in what, 2017, compared to 2021 where the full reels came in force, they were paying twice as much tax. So, that had such a massive impact on traditional landlords. And Furnished Solid get the change. So, right now they still get margin interest relief, which means all that essentially means is when you look at your bottom line, you get to keep more of your profits because you're able to offset more of your costs.
So, if there's a couple of lending to purchase that property, then again, financial outlets would probably win on that count as well. When we look at trying to keep more of the money in your pocket. So, lots of questions. Do you think that will be changed? I think in fairness, because there's been such a big boom for furnished holiday lets in recent years, as a bit of a collaboration of things between Covid and people not being able to fly, everyone got a dog. Being able to travel with pets suddenly became really good.
You've got a dog.
I do have a dog. Of course I've got a dog. Everyone's got a dog, don't they? Everyone's got a dog, yeah. I do. I've got a little cockapoo. She's one. She's lovely. Everyone's she, no, she's not a lockdown dog, is she? She's not. She was a, a post lockdown -- gone down in price -- You know, I'm afraid. We price, she's a Cockapoo. Purchase . Love it.
So, yeah, there was a bit of a, you know, a. a trifecta of things that kind of happened between COVID and warm weather and dogs etc that made furnished that's really attractive and certainly when you add in all the tax advance, well, the tax twerks if you like, all again came in all around the same time.
So, whether or not the government side Oh my goodness, everyone's got a financial holiday now and they're really having a lovely time with all of these, you know, slightly different tax rules, whether that changes in due course, look, who knows that they are notorious for changing things just as we get accustomed.
So, we don't know, but we can only work on what we've got right now, right? Brilliant. Okay, So, what we've done, we've done mortgage interest release, we've done profit apportionment, business rates versus council tax. Ah, yes, another little cheeky one there. Yes, So, certainly for qualifying for nationality let's, again, it's a business and businesses get business rates, So, the property will be rated by the valuation surveys and, , quite often if that valuation falls relatively small, then you can alSo, get something called, Business relief for small businesses, small business rate relief, which can mean that the rates you pay are actually zero percent, which means you might go from, yeah, council tax to nothing in a relatively short space of time.
So, yeah, lots of things to consider there. And Zoe, I always try and think of questions that listeners are sort of shouting at the car, radio, whatever, saying why doesn't he ask about this? So, what might, haven't I asked? And this is not buy to let, is it? This is holiday let. This is earn and furnish holiday let.
All of those lovely things we just talked about are not applicable in landlord world. And certainly we are seeing a lot of landlords considering this alternative route because it can be quite different. Brilliant. Okay, So, up on my young couple, my young going forward. Going upwardly mobile capital, what they should, who they need to speak to and what they should be doing.
Absolutely. So, yeah, first job, speak to a lovely accountant, Somebody who knows what they're doing, knows financial outlets, and are willing to advise. To look at the real implications. I mean, we've gone broad stroke there, but they really need to have someone look at their incomes, outgoings, and look at this income and see where it'll land.
And then, yeah, have a look at some properties and speak to somebody like a, like a big booking agent, someone like, I don't know, cottages. com, for example, who will go out, look at a property with them. If they've already bought one, they'll look at the health and safety aspect. They'll give a projected income, do a bit of research about the area, see how saturated it is, and just generally immerse yourself in the, in the industry, because it is a fascinating place to be.
And there's lots of owners who are really helpful at getting other people started as well. Brilliant. We like cottages. com, but one should say there are other. Very good at letting, holding, letting agents, of course there are, doing it all correctly.
Okay, right, that's brilliant. Thank you Zoe, So, interesting okay, I want to talk to you about some silver surfers now. I think, well, like not surfing on the web, like surfing on the sea, I think. So, there's a lovely couple of these guys, they've owned in, in St. Ives and Port Isaac, John and Jackie, in the late sixties, look, I've looked after them for a number of years now, and they're just, they rang me the other day and had a chat and we're talking about winding down.
So, this is not winding up. This is winding down. So, they're an experienced couple, how would I describe them to you? I think I'd say , they've got a rental property portfolio. Right from the name, right from the nineties, they've got Some now still, and they've got a small caravan park, which they've been running. They want to slow down. They need income for now until their pensions kick in, they might start selling some of the properties and keeping the caravan park and getting a manager while they go holidaying, kids are left home, So, they've got a big house, empty nest, what do we do with the empty nest?
Not wanting to move yet, but they want to be productive. They are 40% taxpayers and they are thinking of renting out. The West Wing, not the East Wing, the West Wing. So, does that sort of couple sound familiar to you, Zoe?
Like my, my daily bread and butter, absolutely. All the sort of people that I deal with every day, with lots of kind of, you know, conflicting objectives, trying to get out.
And do you know, even the mindset piece of going from, I've spent my life building this up, and now I suddenly have to think about potentially spending it, which in itself is quite, quite a leap. So, yeah, this is very much, this is my zone, very much So, I'm really, really relieved now, because I was thinking maybe she'll just say to me, Mark, I've never met anybody like this in my life.
And I think, well, this podcast is going to have to finish. No, Zoe, tell me about my Silver Surfers. Silver Surfers, love it. Yeah, love this sort of stage of life. Lots of changing things, lots of objectives. And often people at this point also, are talking about, you know, starting to maybe gift and think about inheritance tax.
So, lots of different objectives here, and it's really important when you look to, to buy an asset or to buy a property to think about the long term plan of that. Lots of people are very immediate, you know, the look of being immediate, can I afford it, will it be useful this year, next year, for the next maybe two or three years, but actually you also, have to get out of whatever you put in place as well.
So, things like capital gains tax, inheritance tax, all starts coming into place. So, yeah, lots of things to manage here. Love the idea of renting out the West Wing. I wish I had a West Wing to rent out someone. I heard that. I heard that you did, but okay. Yeah, maybe the garage I've got any papers, but that's about it but yeah, what a lovely idea. And actually, again, very, some real little tax breaks here as well. So, renting out a part of your main property, whether that is because you've got a lodge upstairs or you've got a, a part of the house that you can normally sort of siphon off and use as a furnished holiday let on description. There is a little rent a room relief allowance for that. So, the first 7, 500 worth of income you make is actually tax free. So, even these clients who are high rate taxpayers, like, they could get a little tax free income stream going on, which would be. Really a lovely supplement to their later life plans.
So, that would make an awful lot of sense. And I have had a client who did this quite recently. It made their house value rocket as well, because big house in the country, quite expensive, you know, lots of maintenance costs and whatever. And it had been on the market for something like four years. And, they put this little sort of sideline in place, started generating really good income, got a full year's worth of bookings up in hand.
And. Let's put the house back on the market with a ready made income stream. And it was snapped off within weeks. Do you know, it absolutely flew off the shelf for what a fantastic idea, really. So, yeah, it would be extra handy if the lodger mowed the lawn as well. I saw yesterday, I just, I did read last night.
So, I, I'm not feeling 100% of the moment. Maybe I, maybe I didn't dreamt this, but I did read last night that in America, somebody. , next door neighbour started to mow the new, the new incumbent next door neighbour. He started to mow their lawn and he's just like, he was right at half past five in the morning mowing their lawn. And then he put a bill through the door for 69 dollars. Astonishing! Anyway, we digress. sorry, come back. Odd. Ah, nothing strange in the book , yeah, So, I guess, pick your lodgers wisely, I suppose, was the yeah, lots of things going on here. So, shall we talk about Capital Games, Tax? Yep, we've got the West Wing covered.
Okay, let's talk about it. So, yeah, So, capital gains tax has changed lately and certainly in the autumn budget, they sort of sneakily snuck in a couple of cheeky rules about capital gains tax that people might not be aware of. So, let's talk about this. So, capital gains tax affects people who have got assets that they've appreciated and value.
So, it doesn't matter whether it's the Rolex on your wrist or whether it's. The investment property you buy, everything is technically subject to capital gains. That's where you've made a profit. So, they do need a clearing. They need a clearing quite quickly these days as well. And the rates have, are quite expensive for investment property compared to everything else.
So. Let's just have a quick dive through the rules. The changes they made last year was to reduce the exemption. So, we used to have a 12, 300 per person exemption, So, you could buy a Rolex for 5, 000 and sell it for 17, 000 and you'd still go with a new exemption, no capital gains tax to pay, no problem. As of April this year, that has been 6, 000, and as of April next year, getting halved again to just 3, 000.
So, you will only be able to make 3, 000 grand gain for these rates. So, this is going to be painful for people like, like your couple here, who have had a property portfolio for a while, they're going to start feeling a bit of the pinch there, on their profits and the rates as they stand for investment property right now at 18% for basic rate taxpayers and 28% for it on above that.
So, for your 28% they're going to pay if they look to sell their property. That's a lot of percentage. It's a lot of percentage. Yes, it is. And So, there has to be a bit of foresight about how you're going to get out of these things now. It's not going to be quite as simple as it was before. So, yes, if they do decide to sell the properties, they are going to incur a bill if they've made gains.
With furnished order that world, there is some potential relief here as well. So, again, because of that qualifying business situation, there is something called business asset disposal relief. So, people with furnished order, that's when they come to sell them in the future, as long as they qualify, will potentially be able to reduce their rate down to a 10% flat rate.
So, that 18% saving, you know, on a hundred grand gain is going to be an awful lot of money for somebody who is looking to sell. So, certainly we'll, when you're thinking about, okay, especially if it's not a long term investment, if it's a 10 year investment, or if the profit has been a bit of a project and it's required quite a lot of what we're doing and you've made the value rocket suddenly because you've, I don't know, fix something up that didn't work before, I didn't have a roof. Then a furniture outlet might be a good route for that. We're sort of thinking about an exit plan, and then we've got inheritance tax. Do we dare, do we dare venture into inheritance tax world? Just, just, just take us a little peep around the door, perhaps.
Okay, we'll sneak in. So, inheritance tax, very controversial, even more controversial than capital gains tax. Sometimes labelled the voluntary tax because there is an awful lot you can do to mitigate it and yet people often do because, I don't know, maybe we're very British and we don't like to talk about death, we don't like to think we might die, all of these things, but yeah, certainly there are... A lot of people who, even with just, you know, their main houses and, you know, some savings will tip into inheritance tax. So, the key to inheritance tax is you have to look at things very holistically. And you have to think about what you're spending and when. How long are you likely to live for?
And get some really good legal and financial advice. You, currently, as the rules stand, you, everybody has and has had for decades a 325, 000 nil rate band, i. e. that is the amount you can die with in your estate and have zero tax consequences for your beneficiaries. No problem. They also, in light of probably more So, where you are than where I am, it's on the Yorkshire, because the house prices are probably slightly different across the two, but they also, introduced a residence mill rate band that sat on the top of that, to account for the fact that people's house values were quite expensive, of another 175, which essentially meant, as long as you qualified for both, you could die with half a million now, and have that passed to your beneficiaries without taxing consequences. Anything above that is taxed at 40%. So, again, we're talking, you know, it's such a fine line. If you've got a property selling at 28%, you might be able to do it with something with the proceeds, as opposed to just waiting for it to be taxed at 40%.
So, you know, you have to kind of think a little bit further ahead about what the long term plan is. But inheritance tax is... It's an interesting one. You tend to find people who are really sort of dead set against it and feel like they've been taxed enough through their lifetime and why should I? And you do meet the odd occasional, I don't mean odd as in odd, I mean odd as in occasional people who are quite happy to pay it and feel as though it's their duty and they want to contribute and doubt about.
So, it is a bit controversial. And with investment property, generally they will just be counted as part of your estate, as with anything else. However, did you mention they had a caravan park? They got a little caravan park, funnily enough, yeah. It's full of caravans. It's full of caravans, and people, and hopper poos, probably.
So, yes, caravan parks might fall slightly differently here. So, typical furniture like a three bed semi that you rent out don't qualify. However, caravan parks are quite interesting. They've been in some high court cases just lately. Foreign Inheritance Tax rulings. Because... If you can prove that it is a trading business asset, i.e. the majority of the income from the Park came from other things such as food, drink, entertainment, excursions, services, etc., as opposed to the accommodation itself being the main Source of income, the actual asset, Then you might qualify for business relief in the traditional way that if you hold a business, you can qualify for that, which could mean that you can pass it down as a business to your beneficiaries and save the 40%.
So, if it's a 500, 000 caravan site, there's a potential 200, 000 saving there. So, some very, very good tax advice would be required around that. , but just something to kind of put out there because people very rarely know about these things and inheritance tax is very interesting. It's one of my favourite things to work with because it's, there's so, many things you can do to make people's lives much better when it comes to that. So, yeah, that's it from me, I think, from them for inheritance tax. That Zoe, that's absolutely brilliant listeners. Have you ever heard an enthusiastic chartered financial planner before? Have you ever heard an in such an enthusiast? That's So, good. And it's So, interesting. And Zoe, I want to liken you to a biscuit. I want you to like, because we have a box of biscuits and I, when I shouldn't do, I put there to get my favourite chocolate biscuit, and I think we're going to call you a Zoe biscuit and a Zoe biscuit is a chartered financial planner. And someone who really knows what they're talking about. And ladies and gentlemen, have you got a Zoe in your biscuit tin?
Because if you haven't, then, you know, you can use this Zoe. You could eat this Zoe. But, if you've got your Zoe, please make use of him or her. Because obviously, it is more than just buying a property, I think. Well, I've learned, that's what I've learned this morning. I've learned lots this morning. I've learned that everybody's circumstances are different.
You know, quite coincidentally, we talked about a caravan park. Zoe was able to pontificate about Caravans in a swift way. No, that's all right. That was a pun because I got a swift caravan opposite me. , but no, , So, everybody's circumstances different. , I think you need the best. You, you, you'd go to the best doctor.
You go to the best optician, hopefully you go to the best mortgage broker and certainly the same with your, with your financial affairs I know Zoe and I talked about this – so sad -- that this stuff isn't taught in school, such that people have a knowledge and a start place you know, people are coming out of school now and they don't even know what percentages are. So, you know, okay, it gives Zoe and I a living, but that's not, that's not the point, it's so, important, just a couple of, , disclaimers at the end, as you'd expect us to do. These, scenarios are not your scenario.So, every scenario is different , I know Zoe will do her disclaimer as well.
I don't give, can't give. Anybody who works for housing holiday home mortgages can't give financial advice and wouldn't even dream to do so, wouldn't even know where to start.
Zoe, it's been absolutely fabulous having you. , do you just want to do your disclaimer and tell people who you are and how they can get a hold of you?
absolutely, yeah, no, thank you So, much for having me. It's been So, much fun. I love talking about these things, as you can tell but yes, if you do want to kind of be immersed in the finance world a little bit, dip your toe in, then come and find me on LinkedIn. You'll find me under ZoeTaylor38. Come and find me because I have a fortnightly newsletter that you might find very interesting that covers a whole host of financial topics.
Just a lot of dipping, but you can give me a call if you want to as well on 07889. 594 604 and , you'll find me online. I'm sure come and look me up and we'll stay in touch and that would be very lovely. , particularly if you need any help around So,rt of pensions, inheritance tax and kind of making a later life plan.
That is very much my bag. but yes, as you say, we should definitely do a sensible disclaimer because you're not allowed to just. say things and very much So, you are absolutely right things are very bespoke to people like you cannot apply a broad brush this is why advice in the pub always goes terribly wrong because what works for some people just absolutely will not work for somebody else So, all of this information was given for financial education only and does not constitute financial advice which can only be bespoke review of your individual circumstances. Content on our website and any recordings, newsletters and future content is strictly for general consideration only and no action must be taken or refrained from based on the content alone.
Professional advice must always be sought. And accordingly, neither Zoe Taylor nor any affiliated parties, officers, employees or contractors will take responsibility for any losses occasioned as a result of any action or inaction. Thank you. Brilliant. Okay. So, you've seen the Yorkshire Shepherdess, now you've heard the Yorkshire Financial Planner.