Sarah Bradford looks at how the end of the tax regime for furnished holiday lettings can impact landlords who are married or in a civil partnership.
The special tax regime for furnished holiday lettings (FHLs) came to an end on 5 April 2025. After that date, FHLs are treated in the same way as other residential lets for tax purposes. This change removed many of the advantages previously enjoyed by landlords letting furnished holiday accommodation.
The loss of the various capital gains tax reliefs, including business asset disposal relief, previously available in respect of FHLs has been well documented, as has the change to the way in which holiday let landlords receive relief for interest; from 6 April 2025 onwards, relief for interest and finance costs has been given as a basic rate reduction rather than by deduction. Where a furnished holiday let is jointly owned by a married couple or by civil partners, the way in which
