There are tax advantages available for buy to let investors that go for a holiday home in the UK.

Holiday letting can offer some considerable tax benefits when compared to buy to let housing.

To qualify as a holiday letting home, your property must be a furnished property, in the UK, which is available to be let on at least 140 days of the year.

You must let your property out for at least 70 days each year at the full market rate and must not let to the same person for more than 31 consecutive days.

If your property fulfils these criteria, and you make a loss, this can be offset against your other income, reducing your overall tax bill.

It is also possible to minimise capital gains tax if the property has ever been your principal private residence (PPR), or main home.

When buying a holiday letting property, elect your current home as your PPR, leaving you with the option to elect your second property in the future.

This exempts you from capital gains tax for this period and the last three years of ownership.

On sale, each owner can claim up to £40,000 in letting relief against the capital gain and if you spend the money on another lettings property within three years, you will be exempt from capital gains tax.

Olive Tree's development Talland Bay has further tax benefits reducing the stamp duty as you enter into a contract to buy the land and then build the property as a separate stage.

For more information please speak to Olive Tree who can recommend you to tax experts in this area.