Sarah Bradford outlines the implications for landlords of the end of the furnished holiday lettings tax regime and asks if it is worth selling before 6 April 2025 to benefit from the existing capital gains tax reliefs.
When it comes to letting residential property, not all property is equal in tax terms – lettings that qualify as ‘furnished holiday lettings’ (FHLs) benefit from special tax rules.
All good things…
One of the main advantages is that landlords with FHLs are able to deduct interest and finance costs in full in calculating the taxable profits for their FHL property business. In addition, properties that qualify as FHLs are able to benefit from the capital gains tax (CGT) reliefs that are available to traders. The landlord is also able to claim capital allowance for items such as furniture, fixtures and fittings, and equipment. Again,
