Furnished Holiday Lets: Big Tax Changes Ahead

Furnished holiday lets currently benefit from a special tax regime that provides many tax reliefs not enjoyed by other landlords.

Unfortunately, Chancellor of the Exchequer Jeremy Hunt announced the abolition of this special tax regime in his March 2024 Budget.

The good news is these changes will not take place until April 2025, giving owners of furnished holiday lets time to plan for the transition, mitigate the impact, and make the most of the current tax benefits while they can.

Prompt action could save you many thousands of pounds now and in the years to come.

This unique new guide tells you everything you need to know about the changes.

Subjects covered include:

• How properties qualify for the current regime, some of the background to its abolition and who will be affected.
• The current income tax treatment of furnished holiday lets, how to maximise the benefits of the current regime before it's too late and minimise the cost of the changes.
• How the furnished holiday letting regime operates for companies - the impact will be less severe but there are still important planning points to consider.
• The many capital gains tax reliefs that currently apply and a range of tax planning measures that can be used to make the most of the current regime.
• The impact of stamp duty land tax on many of the tax planning measures considered in this guide.
• A potential escape route for furnished holiday let owners: achieving 'trading status'. For some the benefits could be huge.
• Moving your furnished holiday letting business into a company: how to minimise the cost of the transfer and maximise annual savings thereafter. Using a company is not always a 'no brainer', but worth considering.
• Why now may be the ideal time to carry out inheritance tax planning that could save your family hundreds of thousands of pounds.