Page 72 - Humberts Home Magazine 18
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Demand For Holiday Letting Businesses Show No Signs Of Slowing Up In 2018
Humberts have been specialising in the sale
of leisure property for more than 20 years and have a dedicated, specialist department based in Taunton. Properties in this sector are classed for stamp duty as non-residential or mixed use, meaning that they have a lower stamp duty rate than residential properties.
Furnished holiday letting properties have tax advantages in relation to inheritance tax, but the sequential test is whether the properties are being passively let or if there is an active business trade happening. This has been questioned in the Pawson case and more recently Ross Vs HMRC. The question relates to the nature of the business and the level of services which are provided for self-catering accommodation versus a hotel. Merely providing high level services may not alter the characteristics of the business.
Stephen Richards, who heads up the leisure department for Humberts, comments “Many of these businesses are now being sold as limited companies and the question for
any purchaser is in relation to stamp duty, which can be reduced to 1⁄2% if the buyer
is purchasing shares in a limited company. There are other tax advantages such as capital allowances which also need to
be considered.”
If you are looking to sell your leisure property our specialist department have a range of options available to you including confidential marketing. To see a generalised list of properties we are marketing including properties not listed online then
please get in touch:
Stephen Richards
Head of Commercial
01823 331 234
were rated 5 star gold by visit England. Facilities on site include a newly built standalone shepherd’s hut reception office, an indoor swimming pool complex, children’s
play area and an animal enclosure for petting. Set in
1.55 acres, the business had a turnover of approximately £282,000 including VAT.
 Glynn Barton Cottages, Cornwall
Recently sold holiday cottage complex with a guide price of £2.5 million. Glynn Barton Cottages is a premier holiday letting business specialising in holidays for families with young children. Located equal distances from the south of Cornwall coastlines the property is a grade II listed 4/5 bedroom farmhouse along with a 1 bedroom detached annexe/guest suite. On site there are 8 holiday letting cottages rated by Holiday England 4&5 star. Facilities included indoor swimming pool complex, games room, indoor soft play barn and an all-weather tennis court. The gross turnover was £281,011 net of VAT and the property was set in 13 acres of gardens and grounds and the site also had a newly installed
Bio-mass system.
Red Doors Farm & Cottages, East Devon
Also recently sold with a guide price of £2 million was this successful, luxury holiday letting business with a Grade II listed, 16th century 4 bedroom farmhouse and 6 stone built holiday letting cottages, all of which

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