Lee Sharpe looks at how the tax regime for furnished holiday lettings will unwind over 2025.
The government of the time announced that it would abolish the furnished holiday letting (FHL) regime (sometimes referred to as the furnished holiday accommodation (FHA) regime), with effect from April 2025 (i.e., 1 April 2025 for companies, and 6 April 2025 for income tax – individuals, partnerships, trusts, etc.)
In truth, the government had been toying with abolishing the FHA regime entirely since as far back as 2009, when it was forced to accept that restricting the regime’s scope solely to UK properties was discriminatory under EU law. At the time, FA 2011 grudgingly widened the scope of FHA to include properties in the European Economic Area, but removed perhaps the most valuable tax income tax reliefs (flexibility for FHA losses). There appears to have been little substantive outcry since the 2024 announcement, so maybe
