You may have noticed in the recent Budget that the Chancellor has announced changes to the rules from April 2025 that will seriously affect the current tax advantages available to qualifying furnished holiday lets.
Amongst those changes are:
- Removal of Business Asset Disposal Relief on capital gains;
- Profits will no longer count as earnings for pension purposes;
- Changes to calculation of tax relief on furniture, fixtures and plant;
- Interest and finance charges will be restricted to basic rate relief;
- Loss of small business rates relief;
- Profits will automatically be assessed 50:50 between married couples and those in civil partnerships unless the appropriate steps are taken to change that.
The new rules are still a year away and that does give us some time for proactive tax planning to counter these measures.
If you would like to arrange an exploratory conversation to discuss the options, please get in touch with either your normal point of contact or one of our tax team specialists below.
