Furnished holiday lettings (also known as FHL) is a term used to describe short term holiday accommodation where the owner qualifies for favourable income tax, capital gains tax and corporation tax treatment if certain conditions are met because the letting of the accommodation is deemed to be a trade. For details of these conditions and the tax treatment see Division B6.4.
The FHL tax regime is abolished from 6 April 2025 for income tax and capital gains tax, and from 1 April 2025 for corporation tax. After this date FHL income and gains will form part of the person's UK or overseas property business, see more details in B6.4061.
The rules up to April 2025 apply to furnished holiday lets in the UK and in the European Economic Area (EEA). The rules for EEA furnished holiday lettings continued to have effect after Brexit. For a list of the countries in the EEA, see the GOV.UK website.
The commentary below discusses the tax treatment for chargeable gains purposes following the abolition of the regime and the
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Web page updated on 17 Mar 2025 17:11