Furnished Holiday Lets – Changes coming, don’t lose out on possible tax relief

There are big changes coming for Furnished Holiday Let owners from 1 April 2025 which could mean the loss of possible tax reliefs if action isn’t taken. Here is the HMRC update article summarising those changes.  in this post we summarise a couple possible actions you can take to save tax and save money.

Claim Capital Allowances while you still can

The government is abolishing the Furnished Holiday Let Tax Regime 6th April 2025. With it goes the ability to claim for embedded fixtures & fittings (pipe work, electrical circuits, carpets etc….) labour costs and materials for improvements alongside a % of the original purchase cost. If a quantity surveyor has not assessed the property, you should get in touch to discuss the benefits to you.

Our trusted partner, Goodman Nash, are able to identify all qualifying items prior to the removal of the benefit. Once pooled, the allowances can be drawn down against tax on profits, without time restriction going forward. Also, a rebate can be triggered by unlocking the prior year’s tax return. Their fees are strictly performance based and reflect a mutually agreed % of the identified allowances.

For an initial chat and property review, call Howard Parker on 01380 737538 quoting – ‘dawes accountants’

Avoid double rate council tax and qualify for Business rates

If your property remains subject to council tax, you should look to qualify to be in business rates. This will circumvent the 100% uplift in council tax charges which takes effect 1/4/2025, apply relief to the bill going forward and also recover a rebate for all council tax payments made since letting began. The only small negative of this move is a need to arrange for commercial waste/recycling collection. Goodman Nash can also help with this application process.

If you have any questions on the above points mentioned or in regards to the changes coming in taxation treatment, please do not hesitate to contact us.