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This guidance note sets out the qualifying conditions for a property let to be treated as a furnished holiday let (FHL) for tax purposes and the subsequent tax implications. The FHL tax regime will be abolished from April 2025, further details are set out below.

Whether or not a property qualifies as an FHL can make an important difference to the taxation implications. In particular, the letting of furnished holiday accommodation can benefit from a more beneficial regime in some respects. The main benefits of an FHL is that it is treated like a trade for certain purposes which can be advantageous for the purposes of capital allowances, capital gains reliefs, interest costs, pension contributions and national insurance, see more details on each of these areas below.

Following HMRC information requests to online letting companies, which will become an annual obligation to report to HMRC going forward, see the Digital platform operators ― reporting on platform users guidance note. HMRC is instigating enquiries into whether FHL income is being declared by holiday homeowners and also whether the