Furnished Holiday Lettings (FHL) Tax Benefits Ending Soon!
Attention, Furnished Holiday Let (FHL), Serviced Accommodation and Airbnb owners—time is running out! The UK government has officially announced the end of the FHL tax regime, and the clock is ticking fast, Act now to secure what you are due back before these advantages disappear for good.
Here’s what you need to know:
From 6 April 2025: The FHL rules will no longer apply for Income Tax and Capital Gains Tax.
From 1 April 2025: They will no longer apply for Corporation Tax.
These changes mean holiday let owners will lose some key tax benefits:
Restrict Loan Interest Deductions: From 2025, you’ll only be able to claim loan interest at the basic rate of Income Tax, drastically reducing your tax efficiency.
Eliminate Capital Allowances: Say goodbye to claiming capital allowances on new expenditures—this opportunity will vanish. After April 2025, you’ll only be able to claim relief for replacing domestic items.
Withdraw CGT Reliefs: Critical reliefs like Business Asset Disposal Relief and Business Asset Rollover Relief will be off the table.
Remove Pension Relief Benefits: FHL income will no longer count towards your maximum pension contributions.
Act Now—Stop Overpaying And Get What You’re Due Back
Here’s the good news: There’s still time to get your claim completed before those valuable capital allowances before the current legislation closes but the deadline for claiming is fast approaching.
The average amount we identify from each property purchase claim is £42,700 of actual cash savings for you personally or your business. waiting until the last minute could mean you paying significant higher taxes and less profits than you should have.
If you’ve already purchased or invested in your property, the allowances embedded in your purchase, refurbishment, or construction can still be claimed—but only if you act quickly.
Even after the FHL regime ends, you won’t need to bring a disposal value into account, and any remaining capital allowances pools can be carried forward into future years.
But make no mistake—time is running out to claim what you are legally entitled to! Claim what’s yours and the money you are due back.
Don’t Miss Out!
Claim your property purchase capital allowances, protect your profits and secure your financial future before the deadline approaches to mitigate the new incoming legislation changes. Waiting any longer could cost you tens of thousands in overpaid taxes past and going forward.
Urgency is key! If you need help navigating these changes or want to ensure you get back what your due from your FHL purchase claim then contact us to see what your due. The deadline is approaching fast, and the consequences of inaction and do nothing are too significant to ignore.
For full details, read the policy paper here.
Want to know what your due back from your short lets property purchase or refurbishment? Contact us today—before it’s too late!
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