The Chancellor also announced the abolition of the Furnished Holiday Lettings (FHL) tax regime – the significant tax advantages over standard long-term lets have now gone.
This is because, from a taxation point of view, you are no longer running a business. From April 2025, in the eyes of HM Revenue & Customs, despite the work involved, furnished holiday lets are treated as passive investments and taxed as such. The regime is being brought into line with standard buy-to-lets, which themselves have suffered from tax increases recently.
The new rules will not be finalized until they appear in the Finance Act, but it looks likely they will be approved.
🚨 Data accurate as of the date of publication – 25.06.2024
🚨Tax treatment varies according to individual circumstances and is subject to change. Advice on Capital Gains Tax
and Taxation Advice is not regulated by the Financial Conduct. Some buy to lets are not regulated by the Financial
Conduct Authority.
🚨Information within this blog is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed.
🚨Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.
Source: Quilter Financial Planning – Essentially Mortgages Q2 2024
