The owner of a short term holiday let in Midlothian wants to turn it back into a home after saying changes to tax laws will wipe out its profits from next year.
Laura Chambers has applied for permission to change Bilston Gardens, on the outskirts of Bilston, back into a residential house five years after it was converted into a holiday let.
In her application she says changes due to be introduced next year will mean it is no longer a viable business.
She says she wants to “revert the property back to a dwellinghouse from a short term let due to the abolishment of the Furnished Holiday Let tax
regime which eliminates the profit margin of the business as of April 2025.”
The UK Government announced plans during its spring budget to abolish the tax relief surrounding holiday lets next year.
It means income and gains from a furnished holiday let will form part of its owners UK or overseas property business and be treated in line with all other property income and gains.
Currently owners of the short term let properties receive some tax relief and benefits which will be scrapped.
The UK Government says the changes will “promotes fairness and aligns the tax rules for furnished holiday lettings with those for other property businesses”.
Since the Scottish Government introduced changes to short term holiday let legislation which requires them to be licensed local authorities have been inundated with applications for a change of use from residential homes to holiday lets from operators who did not need it before.
The application to turn the Bilston house back to a home is currently being considered by planning officers and can be viewed on the Midlothian Council planning portal.
By Marie Sharp Local Democracy Reporter
The Local Democracy Reporting Service (LDRS) is a public service news agency. It is funded by the BBC, provided by the local news sector (in Edinburgh that is Reach plc (the publisher behind Edinburgh Live and The Daily Record) and used by many qualifying partners. Local Democracy Reporters cover news about top-tier local authorities and other public service organisations.
