Furnished Holiday Lets (FHL)
Post Author:
Anne Melville
Date Posted:
October 3, 2024
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The new government has confirmed that it will proceed with the abolition of the FHL rules from 6 April 2025 which we outlined details of in our August 2024 newsletter for property landlords.
https://jsca.co.uk/newsletter-for-property-landlords-august-2024/
Further information has now been published on the transitional rules, which include that:
- where an existing FHL business has an ongoing capital allowances pool of expenditure, it can continue to claim writing down allowances on that pool; and
- losses on FHL properties can be carried forward and used against income of the UK or overseas property business in which the properties will now be included.
An anti-forestalling rule will apply from 6 March 2024 to prevent the use of unconditional contracts to obtain capital gains tax relief under the current FHL rules, where completion of the contract would be after 5 April 2025.
If you own a furnished holiday let, please contact us to see how these changes will affect you and whether, for example, it may be worth disposing of a property this year rather than a bit further into the future.
