Furnished Holiday Lettings (FHL) tax breaks will be phased out as of April 5, 2025. The main changes include:
Business Asset Disposal Relief (BADR) and other capital gains tax exemptions will no longer apply.
Tax relief on loan interest and other financial costs will be restricted, treated similarly to the taxation of buy-to-let properties.
Capital allowances for equipment, fixtures, and fittings will also be discontinued.
