The taxes will affect those who offer their house to rent for atleast 140 days a year. This will be good for some home owners because out of those 140 days, it has to be rented out for a minimum of 70 days before the taxes take force. I wouldn’t be surprised if we saw some holiday home owners only offering their house for 130 days a year.

The new taxes will be coming into force because, according to the Treasury, the tax rules at the moment break European laws. This is because current holiday home owners are able to receive tax reductions on certain things because they are classed as traders. The new stealth taxes will mean that holiday home owners are named as investors, not traders, meaning they will have to pay more taxes.

Although this isn’t good news for holiday home owners, it is good news for the Government. With over 60,000 home owners being affected, the Government look to make around £20 million out of the new stealth tax. Despite the Government gaining an extra £20 million from the taxes, it end up being worse for the Goverment than they think.

This new stealth tax won’t come as good news for holiday home owners. Most holiday home owners already have to pay high prices for essential things like maintenance and holiday cottage insurance. Now as a result of the taxes, home owners are being charged more, therefore making less income and resulting in some holiday homes having to close down. According to analysts, these taxes could result in the tourist industry loosing £200 million each year. The tourist industry won’t just be losing money though, due to the number of holiday homes that will have to close, a number of jobs will also be lost. Yet more bad news for the so called recovering recession.

If you’re looking for insurance for holiday homes based in the UK, or just overseas property insurance for your holiday home abroad, Schofields is the site to visit.