Static Caravan Tax

[RME]

Hi,

My wife and I are purchasing a static caravan on a holiday park and we are a little unsure of the income tax situation.
I've found lots of information about what things are deductible under the furnished holiday lettings act, but we will not qualify as we only want to let it out for a few weeks to cover our costs.
My question is, how is the rental income treated when the furnished holiday lettings act doesn't apply? i.e. can we deduct site fees/ground rent/advertising etc. from the rental income such that we only pay tax on the profit (if any)?

Sorry if this is a basic question, but out tax affairs have always been relatively simple (salaried employees, PAYE etc), so never even had to fill in a self assessment form.

[bd6759]

You can only deduct the costs that you incur in connection with the letting, so it will be a proportion of site fees incurred whilst it is let, but all of the advertising.

[RME]

Thanks bd6759,

So if the caravan is actually let for say 20 days a year. I can deduct (20/365) x (ground rent + fees etc) + advertising from what I receive and pay income tax at the marginal rate on the remainder?

[bd6759]

That;s right, But at a push, it this was really a business, you could claim the ground rent for the period that it was available for rent even if not actually rented. If you decided that you would rent it out every July and August, advertised it as available in those months, and never used it yourself in that period, you could claim 2/12ths.