Furnished holiday lettings regime abolished: what it changed for hosts

HostStack Team · Team discussion starter

HostStack editorial — general discussion only, not tax advice. Speak to an accountant or check HMRC guidance for your situation.

From April 2025 (income tax) the special tax treatment for furnished holiday lettings was abolished. Income from these properties is now generally treated like other property rental income. Changes widely reported include how finance costs are relieved, capital allowances on new furniture and equipment, pension contributions based on the income, and capital gains reliefs. Transitional rules apply in some areas.

Separately, Making Tax Digital for Income Tax applies from April 2026 to sole traders and landlords with qualifying income over £50,000, with lower thresholds following in later years.

What questions are you taking to your accountant this year? Please keep figures general and avoid posting identifying financial details.