Tax Efficient Property Lets

There have been several recent media reports outlining the rise in Scottish tourism over the past six months, which comes as good news for those in the industry throughout the country. Scotland’s tourist industry appears to be bucking the UK trend, since overall hotel occupancy rates for the UK have plummeted to their lowest levels since 1996.

However, we at CKD Galbraith have noted that many farmers and estate owners who own property in Scotland, are not maximising their assets by capitalising on the potential of their houses and cottages to offer accommodation for visitors and holidaymakers. In addition, many people do not realise that the interest on capital borrowed to invest in letting property may be deductible against income derived before tax. Such development may also attract a substantial grant in some areas.

The popularity of Scotland offers a golden opportunity for many people to use part of their house, or a property which they do not use for most of the year, as a sporting let or as a holiday cottage. We have experienced a high level of interest in sporting holidays this year, and also huge enthusiasm from families wishing to holiday in private houses in scenic areas of rural Scotland.

If you borrow money to renovate your house, or otherwise adapt it in order to offer holiday accommodation, the interest on the loan is tax-deductible. In some areas farming businesses can obtain substantial grants towards such conversion. The returns on the marginal investment can make excellent commercial sense. With the forthcoming changes in the Agricultural Holdings Legislation, farm tenants will have a right to make this sort of investment in buildings on the agricultural holding, raising all sorts of implications for landlords.

Our specialist holiday letting department now handles more than 200 cottages, farmhouses, mansion houses, lodges and castles throughout Scotland. We also have a dedicated holiday website, www.cottagesandcastles.co.uk allowing holidaymakers access to a real time online booking facility and providing an international market presence for letting clients and their prospective tenants.

A dedicated manager removes the “hassle” to the owner and provides a level of service not available through other agencies.

The new 2004 holiday lettings brochure will be available shortly.
For a copy, or more information, please email us at: holidays@ckdgalbraith.co.uk

CKD Galbraith Forthcoming Events

CKD Galbraith is joining forces with solicitors Pagan Osborne Group to host an agricultural seminar for individuals and organisations with farming interests.

The seminar will cover the implications of the recent Scottish agricultural holdings and land reform legislation, advice on telecommunications and renewable energy, property values and profitable uses for farm steadings.

Pagan Osborne Group will offer advice on land tenure and the tax implications of land reform.

Speakers: Chris Addison-Scott, Mike Reid, and Alistair McIntyre of CKD Galbraith.
Date: Wednesday 15 October 2003
Location: The Links Clubhouse, St Andrews
Time: 6.30 for 7pm

The event is free to attend and refreshments will be provided.
To register please telephone: 01334 870032 or email: cruivie@ckdgalbraith.co.uk

To read previous newsletters from CKD Galbraith please click here.

A New Force in Property

CKD Galbraith is a new property consultancy formed through the merger of CKD Finlayson Hughes and Cluttons (Scotland).

The consultancy specialises in serving the needs of private clients. With offices in Edinburgh, Glasgow, Perth, Aberfeldy, Inverness, Ayr and London, our partnership provides the full range of property consulting services across the commercial, residential and rural sectors throughout Scotland. The combined knowledge, expertise and experience of CKD Finlayson Hughes and Cluttons (Scotland) both firms – each enjoying long-established reputations for quality service – has created a national partnership with unrivalled local knowledge.

Services include:

• Sourcing properties
• Surveys
• Appraising and valuing
• Negotiating purchases on the best possible terms
• Residential Property
• Commercial Property
• Forestry Property

For more information please visit www.ckdgalbraith.co.uk