Glossary · UK
What is Furnished Holiday Lettings (FHL) Regime?
A former special tax regime for qualifying short-term holiday let properties, abolished from April 2025.
Full Definition
The Furnished Holiday Lettings (FHL) regime was a special UK tax treatment for properties let out furnished on a short-term commercial basis and meeting availability and letting-day tests, giving landlords access to reliefs not available to ordinary residential landlords — including full mortgage interest relief, capital allowances on furnishings, and access to certain Capital Gains Tax reliefs such as Business Asset Disposal Relief. The regime was abolished from 6 April 2025, so qualifying FHL properties are now taxed under the same rules as other residential lettings, including the restriction of mortgage interest to a basic-rate tax credit.