Quick answer
The furnished holiday lets regime was abolished from 6 April 2025. Holiday let income is now taxed under normal property rules, so landlords lose some capital allowances, relief on losses, and certain capital gains reliefs.
Updated October 2026 · Figures based on 2025/26 rates
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What changed
Special FHL treatment ended, including the ability to claim capital allowances on furniture, treat profits as relevant earnings for pensions, and claim business asset disposal relief on sale.
How income is reported
Holiday lettings are reported on the UK property pages. Finance cost relief now follows the Section 24 rules rather than full deduction.
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Capital gains considerations
Sales after April 2025 are taxed under the standard residential property rules, with rates of 18% or 24% and the annual exempt amount.
Transitional points
Anti-forestalling rules apply to some arrangements made before the change, so check how your own situation is treated.
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Frequently asked questions
Can I still deduct running costs?
Yes. Ordinary allowable expenses such as cleaning, utilities and advertising remain deductible.
Is holiday let income still subject to Self Assessment?
Yes, it must be reported on your return.
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