Home / Glossary / Furnished holiday lets (FHL) abolition
What is Furnished holiday lets (FHL) abolition?
Furnished holiday lets (FHL) were a special tax category for qualifying short term holiday properties. The regime was abolished from April 2025, so holiday lets are now taxed like other property lettings.
Why it matters to landlords
Former FHL owners lost several advantages, including full deduction of mortgage interest and the ability to treat profits as earnings for pension purposes. Finance costs are now restricted in the same way as other residential lets.
Holiday let income still counts towards your qualifying income for Making Tax Digital.
Capital Gains Tax reliefs that used to apply to FHLs, such as Business Asset Disposal Relief, are also generally no longer available for disposals after the change, subject to transitional rules.
Furnished holiday lets and MTD →