ARTICLE · 30 OCTOBER 2013

All Change At The Holiday Lets

Smith & Williamson

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Are you a UK non-resident and do you own a furnished holiday property in the UK which you let out? If so, then please read on.

United KingdomTax

Are you a UK non-resident and do you own a furnished holiday property in the UK which you let out? If so, then please read on.

From the 1 December 2012, the VAT registration threshold for non-established taxable persons (NETPs) was removed. NETPs are therefore required to register for UK VAT when they make their first supply of goods or services, which includes the letting of furnished holiday accommodation.

Prior to this date, NETPs were treated the same as a UK established business and therefore had to VAT register when their UK taxable turnover exceeded the registration threshold. The removal of the VAT registration threshold for NETPs brings UK law in line with other EU member states.

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