{"id":309,"date":"2025-02-06T13:08:06","date_gmt":"2025-02-06T13:08:06","guid":{"rendered":"https:\/\/aaila.co.uk\/?p=309"},"modified":"2025-02-06T13:08:06","modified_gmt":"2025-02-06T13:08:06","slug":"tax-changes-for-furnished-holiday-lets-property-owners","status":"publish","type":"post","link":"https:\/\/aaila.co.uk\/?p=309","title":{"rendered":"Tax changes for Furnished Holiday Lets property owners"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The current tax benefits for the&nbsp;letting of properties as short-term holiday lets (known as Furnished Holiday Lets \u2013 FHL) is to be abolished from April 2025. The changes will take effect on or after 6 April 2025 for Income Tax and for Capital Gains Tax and from 1 April 2025 for Corporation Tax and for Corporation Tax on chargeable gains.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The changes will remove the tax advantages that current FHL landlords have received over other property businesses in four&nbsp;key areas by:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>applying the finance cost restriction rules so that loan interest will be restricted to basic rate for Income Tax;<\/li>\n\n\n\n<li>removing capital allowances rules for new expenditure and allowing the replacement of domestic items relief;<\/li>\n\n\n\n<li>withdrawing access to reliefs from taxes on chargeable gains for trading business assets;<\/li>\n\n\n\n<li>no longer including this income within relevant UK earnings when calculating maximum pension relief available.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">After the repeal, properties previously classified as FHLs will be integrated into the individual&#8217;s UK or overseas property business and will be governed by the same rules as non-FHL property businesses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">An anti-forestalling rule also prevents individuals from gaining a tax advantage by entering into unconditional contracts to claim capital gains relief under the current FHL rules. This provision applies from 6 March 2024, the date the measure was first announced.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The removal of the special tax regime for holiday lets is expected to have a significant impact on many involved in the short-term holiday rental market in the UK.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The current tax benefits for the&nbsp;letting of properties as short-term holiday lets (known as Furnished Holiday Lets \u2013 FHL) is to be abolished from April 2025. The changes will take effect on or after 6 April 2025 for Income Tax and for Capital Gains Tax and from 1 April 2025 for Corporation Tax and for [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":310,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-309","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/aaila.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/309","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aaila.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aaila.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aaila.co.uk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/aaila.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=309"}],"version-history":[{"count":1,"href":"https:\/\/aaila.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/309\/revisions"}],"predecessor-version":[{"id":311,"href":"https:\/\/aaila.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/309\/revisions\/311"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aaila.co.uk\/index.php?rest_route=\/wp\/v2\/media\/310"}],"wp:attachment":[{"href":"https:\/\/aaila.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=309"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aaila.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=309"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aaila.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=309"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}