The abolition of the furnished holiday lettings (FHL) rules from April 2025 was announced in the Spring Budget. Following the general election, the Labour government confirmed that it would proceed with the measure, and provided more details in the form of draft legislation, an explanatory note and a policy paper. While some of the detail may change as the legislation is finalised, there will be tax implications for those affected – we discuss the potential issues.

Links

• Why furnished holiday let owners are facing higher tax bills
  https://www.icaew.com/technical/tax/tax-faculty/taxline/articles/2024/why-furnished-holiday-let-owners-are-facing-higher-tax-bills
• ICAEW calls again for FHL brightline test
  https://www.icaew.com/insights/tax-news/2024/sep-2024/icaew-calls-again-for-fhl-brightline-test
• HMRC rejects ‘brightline’ test for furnished holiday lets (FHLs)
  https://www.icaew.com/insights/tax-news/2024/may-2024/hmrc-rejects-brightline-test-for-furnished-holiday-lets-fhls

Panellists

• Stephen Relf, Technical Manager, Tax, ICAEW
• Lindsey Wicks, Senior Technical Manager, Tax Policy, ICAEW
• Katherine Ford, Technical Manager, Tax, ICAEW

Producer

Ed Adams

Episode first published: 2 October 2024
Podcast recorded: 24 September 2024