Can a holiday home be a main residence?

A second property cannot be both a holiday home and a main residence.

Generally a second home will fall into two types:

• HOLIDAY HOME – Where the property is to be enjoyed by your family and friends
• HOLIDAY LET – Where the property is to be commercially let out

Many clients purchase a holiday home with the firm intentions of then permanently living there during retirement. Checks should be made prior to completion that this in fact ‘legal’. Some properties in some areas have occupancy restrictions in place that would prevent this.

You would then need to advise HMRC that your main place of residence has changed. Take advice regarding this as there may be some tax consequences.

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