What happened to the furnished holiday lettings tax rules?
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What happened to the furnished holiday lettings tax rules? They were abolished from 6 April 2025 for Income Tax and Capital Gains Tax, and from 1 April 2025 for companies. A holiday let is now part of your ordinary property business, taxed like any other let. No. From 6 April 2025 for Income Tax and Capital Gains Tax, and 1 April 2025 for companies, holiday lets are part of your ordinary UK or overseas property business and follow the same rules as other lets. Not as an expense, if you are an individual. You get a tax reduction of 20% of the interest for 2026-27, the same as other residential landlords, rising to 22% from 2027-28 under Finance Act 2026. Companies are not affected by this restriction. Spending already in a pool by 5 April 2025 can carry on getting writing-down allowances until it is used up. New spending on furniture or fittings does not get capital allowances, but replacing domestic items can qualify for replacement of domestic items relief. Read the full answer, with every source, at rightotax.co.uk.
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Read the full answer, with every source
The one-minute version
Transcript
What happened to the furnished holiday lettings tax rules? They were abolished from 6 April 2025 for Income Tax and Capital Gains Tax, and from 1 April 2025 for companies. A holiday let is now part of your ordinary property business, taxed like any other let. No. From 6 April 2025 for Income Tax and Capital Gains Tax, and 1 April 2025 for companies, holiday lets are part of your ordinary UK or overseas property business and follow the same rules as other lets. Read the full answer, with every source, at rightotax.co.uk.
Voice and visuals made with automated software, including AI.
This is general information to help you understand the rules. It isn't tailored to your circumstances, so check your own position before acting on it.
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