You are using an outdated browser. Upgrade your browser today for a better experience of this site and many others.
HM Revenue and Customs (HMRC) have published draft legislation and a policy paper outlining the proposal for the abolition of the furnished holiday lettings (FHL) tax regime.
HM Revenue and Customs (HMRC) have published draft legislation and a policy paper outlining the proposal for the abolition of the furnished holiday lettings (FHL) tax regime. This was originally announced by the previous government and any hopes that this may be stalled by the new government are now laid to rest.
The new measures are proposed to take effect on or after 6 April 2025 for income and capital gains tax, and from 1 April 2025 for corporation tax.
The proposed revisions will remove the tax advantages that furnished holiday let landlords have over other property businesses, as follows:
There are some specific transitional rules that will apply to these changes.
If you own properties that currently qualify for the FHL tax regime, we recommend that you review the effects that the change in legislation will have on you so that you can determine if you need to take any action. If you need any help with this, please do not hesitate to contact us, we would be pleased to help you.
See: https://www.gov.uk/government/publications/furnished-holiday-lettings-tax-regime-abolition
07 Apr 2025
Increases to the National Living Wage and National Minimum Wage took effect from 1 April.
Chancellor Rachel Reeves announced 'no further tax increases' in the 2025 Spring Statement.
Would you like to download our mobile app from the App Store?