Furnished Holiday Let
Glossary
Furnished Holiday Let
A Furnished Holiday Let (FHL) was a UK tax category for short-term, commercially-let holiday accommodation that historically qualified for significant tax advantages — but the FHL regime was abolished from 6 April 2025.
Until April 2025, FHLs benefited from: full Mortgage Interest Relief (unlike standard rentals capped at 20% basic-rate relief), Capital Allowances on furniture and fittings, BADR eligibility on sale, and pensionable trading-style income. From 6 April 2025, FHL income is taxed like regular rental income — losing the interest relief, capital allowances, and BADR. Existing FHL owners need to revisit their tax position; some have sold or moved to long-term lets.
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