Self-catering Legal Requirements

Trade Descriptions Act
It is vital that all the information we provide about your property is accurate in all respects - that is why we send you a copy of the description when it is prepared, and a copy of the brochure every year, so that you can advise us of any amendments. Particular attention must be paid to:

1. Accommodation details - are the rooms correctly listed?
2. Facilities/ equipment advertised - do they all still work?
3. Distances mentioned - is the beach really just 100 yards, for example, or is there still a shop within 1 mile (and is it open all year round?)

Insurance
Your property must be adequately insured – buildings and contents – and you must be covered for Public Liability. We have negotiated a policy with a firm of specialist brokers and details are included in the Owner Information Pack. Alternatively please see their website for full details: www.holidaycottagesinsurance.com

Council Tax / Rates
A self-catering holiday property will be considered a second home if it is made available for letting for up to 139 days in a year and will be liable for Council Tax – a 10% rebate usually applies to second homes. For properties available for letting for 140 days or more in a year, Non-Domestic Rates will usually apply and Small Business Rates Relief can be claimed.

Income Tax
All businesses are liable for Income Tax, no matter how small. You should discuss the property letting with your accountant, who will be able to advise you. It is always best to obtain professional advice at the start, so that you know what expenses can be claimed against tax. Your accountant will also advise you about your VAT position.

The Agency is obliged by law to provide the Inland Revenue with any information they request about rental income paid to any registered owner.

Rents are usually treated by the Inland Revenue as "unearned income" - tax is payable and should be declared on your annual tax return. If a property owner resides abroad, the Agency has to take responsibility for collecting and paying the tax due on rentals (details on request).


Electrical Equipment
There are two main sets of Regulations which apply to electrical appliances:

The Electrical Equipment (Safety) Regulations 1994
The Plugs And Sockets Etc. (Safety) Regulations 1994

All electrical systems and equipment in self-catering properties must be maintained to avoid danger to all who use the premises (this includes guests and cleaning staff). The regulations cover mains wiring, sockets, cookers and all electrical appliances provided in the property, whether portable or not. Owners are responsible for making regular visual checks and should keep a record of any testing and maintenance carried out.

Gas Fires And Appliances
We require all owners to have all gas equipment checked annually by a qualified gas fitter. You must keep records of these checks and be prepared to show the current certificate to our representative.

The Furniture And Furnishings (Fire) (Safety) Regulations 1988
This extended part of the 1987 Consumer Protection Act includes important regulations relating to the fire retardant properties of upholstered furniture in self-catering properties. The standards relate to filling materials and covering fabric of settees, chairs, beds, headboards, nursery furniture, conservatory-type furniture, cushions and pillows. “Antique” furniture made before 1950 is exempt as it is unlikely to contain the dangerous materials which were in common use in the 60’s and 70’s.

All furniture meeting the requirements of the regulations should have a permanent label attached - the label will normally be found under the seat cushion, or attached to the base of the furniture.

General Safety
Check over your property from time to time to see if any other safety problems have arisen. Loose or frayed carpets could cause a hazard, check stair banisters etc. Please ensure that there is no broken glass, rusty metal or other hazardous items in the garden or grounds of the property. Keep a record of these checks as you have a duty of care to ensure that your property can be safely used.

Other Consumer Goods - Other products are governed by Safety Regulations:

Heating Appliances - All domestic gas, electric and oil heaters must have a fireguard which meets a British Standard test.

Cots And High Chairs - Must be safe and suitable for the purpose and should have a label or mark indicating the safety standard ( BS EN 716 for cots, BS EN 14988 for high chairs)

Toys - Toys provided in the holiday property must not have sharp points or edges or have pieces which can be pulled off easily.

Bunk Beds - The size of gaps in the bed structure is prescribed by regulations to prevent children being trapped. Look for the BSI Kitemark.

Fire Safety
Whilst there is currently no requirement for a Fire Certificate for holiday homes, each owner is responsible for assessing risks and providing adequate fire precautions.

At least some of the ground floor windows should provide alternative means of escape, i.e. they should open wide enough to allow egress. It is a condition of registration that a fire extinguisher (suitable for use on electrical equipment) or fire blanket is provided in the kitchen. The property must be equipped with smoke alarm(s) and these must be regularly tested by the property owner or his/her caretaker. We recommend mains-wired smoke alarms as it is easy to forget to replace batteries.

A full statement of this regulation can be obtained from this link: A Guide to the Furniture and Furnishings (Fire) (Safety) Regulations

Full details of our letting service are available in our Owner Information Pack – click here to receive a copy.