Furnished holiday lets
Since first being introduced over forty years ago, furnished holiday let (FHL) tax breaks have been very beneficial to those owning qualifying properties. With the spread of Airbnb and years of low interest rates, it seems that more and more people have been buying properties to let short-term to holiday makers. This has distorted the normal residential lettings market and perhaps, too, reduced the supply of properties on the market for first-time buyers.
At the March 2024 Budget, the then Chancellor (Jeremy Hunt) announced that these tax breaks will end after 5 April 2025. This has been confirmed by the new Chancellor, Rachel Reeves. The change will have major consequences for those affected.
In this guide, we outline the current rules, how they will change next April and what the main tax consequences will be for those owning such properties.
