Holiday spot's short-term rental

Our Experts Answer:

The 62 day rule you refer to is in the new mixed-use asset rules that now restrict the deductions against income from rented holiday homes. However, there is an exclusion from these rules for property that is occupied for a period by the owner and for a period where the property is exclusively rented. This would seem to cover your circumstances. This would also be similar to situations like the Rugby World Cup where owners vacated properties to derive rental for a period then moved back into the properties. In these circumstances the income derived is taxable and must be declared however legitimate rental expenses like interest, rates and insurance could be deducted by apportionment for the period that the property is rented.