A holiday Let/ Self-Catering property is sometimes described as a 'furnished holiday letting' - a term referred to by HM Revenue and Customs. These are properties let for periods of anything from days to weeks rather than the more common 6 or 12 month tenancy done for normal buy-to-lets.

The HM Revenue and Customs definition is important because they treat these properties as a business rather than as an investment, which means there are currently important tax advantages over longer-term lets. Currently the tax treatment of holiday lets is different to the tax treatment of longer-term lets, but it has been announced that this is set to change in the near future. Details of the changes have yet to be provided.

The definition of a Holiday Let/ Self Catering property (as defined from the 2005-2006 tax year when the definition was updated) is:

• Available for holiday letting to the public on a commercial basis for 140 days or more, and

• Let commercially for 70 days or more, and

• Let for periods of longer-term occupation (more than 31 consecutive days) for not more than 155 days during the year.

(Please note that this information is written to the best of our knowledge. Please ask your accountant for the most up to date tax advice)

Whilst the government’s definition talks about holiday letting, many of the people who use self catering/short term lets are visitors who are on business, attending conferences, undertaking courses etc. 'Churchfield Holiday Lettings' marketing targets these people as well as the traditional Dorset holidaymaker. We approach colleges and universities, theatres, conference organisers and companies and provide them with links to our website.