News from the 2024 Spring Budget

Furnished Holiday Let (FHL) tax rules will be abolished with effect from April 2025.

The headlines around this may seem daunting but it appears the government is targeting the large property investment companies, who will be the 'hardest hit' by this change.

By removing the tax incentives from FHL, taxation is effectively being brought into line with regular domestic letting. For individual property owners this is unlikely to have a large effect and if you have access to an accountant then they will be able to advise on your personal circumstances.

You will continue to be able offset expenses such as our fees and cleaning costs (these are both deductibles for domestic lets and the removal of FHL is not designed to disadvantage holiday letting).

Being such a recent announcement, some details are still emerging and many news sources are only publishing small amounts of information. The following article is a relatively brief but concise explanation of the FHL rules which are being removed next year:

https://www.krestonreeves.com/news/furnished-holiday-lets-budget-2024/

Image credit: Tax icons created by Futuer - Flaticon