Important!
HMRC Abolishes the Furnished Holiday Let (FHL) Tax Regime
The tax landscape for Furnished Holiday Let (FHL) businesses has undergone a significant shift, with HMRC abolishing the FHL tax regime in April 2025. Here’s a breakdown of what this means.
HMRC has clarified how the changes will affect FHL businesses:
- No More FHL-Specific Capital Allowances: Businesses with FHL properties will lose access to the more advantageous capital allowances treatments.
- Introduction of Replacement of Domestic Items Relief: Instead, FHLs will follow the standard property business rules, including relief for replacing domestic items like furnishings.
- Existing Capital Allowance Pools Protected: If an FHL business already has a pool of qualifying capital expenditure, it can continue claiming writing-down allowances on that existing pool.
- Future Expenditures Under Property Business Rules: Any new spending incurred after April 2025 will need to adhere to the property business tax framework.
The changes may feel overwhelming. Our team of experts can guide you through and help ensure everything has been claimed that you are still able to.
We’ve broken down the abolition of the FHL Regime in a clear and concise white paper designed to cut through the confusion – Abolishment of the FHL Regime explained.
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Did you know businesses in the UK typically underclaim their capital allowance entitlement?
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Best Independent Tax Consultancy Firm
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Best for Commercial Property Transactions
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At Capital Allowance Review Service, we specialise in property capital allowance recovery for businesses with unclaimed allowances on commercial properties.
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We maximise claims for a range of reliefs, including commercial property tax relief, holiday let capital allowances, and R&D capital allowances, ensuring businesses benefit from all eligible tax relief opportunities.
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