The Treasury has ruled out exempting certain properties from the removal of the Furnished Holiday Lets (FHL) regime.
The Government has confirmed that the FHL regime will end from April 2025, scrapping tax perks for landlords running holiday lets.
The idea is to equalise tax treatment for all types of property investing and boost supply for first-time buyers.
Critics have questioned whether former holiday lets would be suitable for first-time buyers and Labour MP for Truro and Falmouth used a parliamentary question this week to ask if there would be exemptions for properties that are restricted by planning permission for holiday let use only .
But James Murray, Exchequer Secretary to the Treasury, didn’t seem overly concerned though in his response, which said: “The Government will abolish the Furnished Holiday Lets (FHLs) tax regime from April 2025, and will apply to all furnished holiday let properties.
“This measure will equalise the tax treatment of landlords’ property income and gains.”
