The allowances for tax on Furnished Holiday Lets have been changed for the new tax year starting 6th April 2025.

In previous tax years owners of Furnished Holiday Lets were given a generous package of allowable expenses. In the tax year 2025-2026 HMRC have tightened up. Furnished Holiday Let allowances are now more in line with the allowances for normal letting.

HMRC have clear guidelines for what qualifies as a holiday let. For example your furnished holiday let needs to have occupancy for a set proportion of the year in order to qualify. For more details go to http://www.hmrc.gov.uk/

Furnished Holiday Lets are becoming very popular in the UK. In 2022 there were 110,000 in the UK, 2/3rds were owned by landlords renting one property. https://researchbriefings.files.parliament.uk/documents/CDP-2024-0088/CDP-2024-0088.pdf#:~:text=In%202022%2C%20the%20OTS%20said%20that%20tax%20return,figures%20appear%20to%20have%20been%20published%20since%20then.

Barnowl Bookkeeping helping you with your Furnished Holiday Let www.barnowl-bookkeeping.co.uk . Covering King’s Lynn, Wisbech, North Norfolk Coast, Swaffham and Downham market.