02/05/2024
Should I sell before the end of the FHL regime?
Furnished holiday lettings (FHLs) enjoy tax advantages not available to landlords letting residential property on long-term lets. The advantages are particularly beneficial when it comes to capital gains tax as landlords disposing of an FHL are able to benefit from a range of reliefs, including business asset rollover relief, business asset disposal relief and gift-holdover relief. However, the special tax regime for FHLs is to come to an end on 5 April 2025. From 6 April 2025 onwards, FHLs will be taxed in the same way as other lets, with gains chargeable at the relevant residential rate. Consequently, if you are thinking of selling or giving away your FHL, or if the property is pregnant with gain, you may wish to consider making the disposal prior to 6 April 2025 to take advantage of the existing capital gains tax reliefs.
READ MORE