In this informative episode, Shaz shares some of the tax advantages of Serviced Accommodation and why having SA as part of your strategy can significantly reduce the amount of tax you pay.
If you have ever wanted to understand more about Service Accommodation and the tax relief that can be applicable to this type of business then this is an episode you can’t afford to miss!
This is a great overview and provides clear advice on both the tax relief that is accessible for Serviced Accommodation and the criteria that must be met, listen in and learn why the differences between ‘buy to let’ and Serviced Accommodation can be a game-changer.
 
KEY TAKEAWAYS
Section 24 mortgage interest relief does not affect a serviced accommodation business if you meet the required criteria. The property must be available for commercial letting for 210 days out of the tax year and actually let for 105 days.
Rollover relief, gift relief and relief of loan to traders are all accessible if you qualify as a serviced accommodation business. These are not available to buy to let businesses which are treated as investment businesses.
When you are buying a property you can claim capital allowances - when you purchase a commercial property you can claim capital allowance on the purchase and when you undertake refurbishment you can claim capital allowances.
In serviced accommodation, you can use partnership rules and split the profits however you choose.
If you qualify for the tour operators margin scheme (TOM) you will only pay VAT on the margin, not the gross amount.
If you only have one property changing it to serviced accommodation for 2 years can mean you will be able to claim entrepreneurs relief and sell the property as a serviced accommodation business.
 
BEST MOMENTS
‘Make sure you claim capital allowances it’s a game-changer’
‘You will be able to significantly reduce the amount of tax you will pay’
‘Entrepreneurs tax means you only pay 10% if you meet the required rules’
 
 VALUABLE RESOURCES
[email protected]
 
ABOUT THE HOST
Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.
Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultation he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.
He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.
You can find Shaz on:
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