19 Feb Staycations: Could this be a Business Investment for You?
If you’ve heard it once, you’ve heard it a million times – is it safe to travel abroad this summer?
You don’t have to look far to find your answer. Health Secretary Matt Hancock has been preaching in recent months that people need to prepare for what he dubs a “great British summer” at home, admitting that he has already planned for a summer holiday in Cornwall.
Many are predicting a boom in the British staycation, not only for this summer, but for years to come. Nick Lomas, director general at the Caravan and Motorhome Club, predicts that lockdown lifting will be like a “cork popping from a bottle”.
The feeling is mutual with trails and national parks nationwide, with chief executive of the Yorkshire Dales National Park Authority David Butterworth describing the recent boom in visitors to their park as “unprecedented”.
He continues – “The challenge for 2021 is to capitalise on this trend and capture the hearts and minds of the people who have experienced the Dales for the first time to make sure they keep coming back”.
Are you missing out on the staycation opportunities?
Are you making the most of your assets? Do you have disused properties or land that does not perform as well as you’d like?
If the answer is yes, you have every opportunity to jump on to this new, growing trend. The possibilities range from refurbishing properties into furnished holiday lets, changing the use of properties from long term rental to holiday lets or using land for caravan or camping enthusiasts.
There are opportunities for relief if you choose to expand into this sector.
HMRC allows tax relief on capital allowances on certain expenditure for UK-based holiday lettings. To claim, the following qualifications must be met:
- The property is furnished
- The property is available for let for at least 210 days in the year
- The property is actually let for at least 105 days in the year
- The property is not let by one tenant for any time greater than 31 days
You can claim capital allowances on major components of the business, such as heating, lighting and plumbing, as well as other assets such as longer term sustainability measures like solar panels or ventilation systems. Depending on the scale of the project, different forms of tax relief may be available, so it could be worth investigating your tax planning options.
As your business grows, new responsibilities such as increased bookkeeping demands and accountancy implications may emerge. If this becomes too much to handle, our team of experts can help, giving you more time to work on achieving your venture’s full potential.
Potential Business Development Opportunities?
We always pride ourselves on getting under the skin of our clients’ businesses, working to understand their unique circumstances. This enables us to spot any potential business development opportunities and ensure that you are getting the most out of your assets.
Opportunities in the staycation industry are on the rise, and it could be well worth your time to investigate the possibilities. Our director-led team of financial and tax planning specialists can support you along the way, helping you to assess your options and translate the vision into a reality.
To find out more about staycation business opportunities, or how we can help you put a plan into action, get in touch with one of the team at mail@dhco.co.uk or 01573 225082.