Answers · UK 2025/26
What happened to Furnished Holiday Let tax reliefs in 2025?
The Furnished Holiday Let (FHL) regime was abolished from 6 April 2025. FHL properties are now taxed as ordinary rental income.
Full answer
The favourable FHL tax regime was abolished from 6 April 2025. FHL owners can no longer claim capital allowances on furniture and equipment, Business Asset Disposal Relief on sale, or count FHL income as earnings for pension purposes. Properties formerly qualifying as FHLs are now taxed as standard UK residential letting. The restriction on finance costs (Section 24) now also applies. Transitional rules applied for 2024-25.
This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.