PIM4185 - Repeal of Furnished Holiday Lettings rules : Capital Gains Tax Reliefs
»Ê¹ÚÌåÓýapp furnished holiday lettings rules cease to apply in tax years commencing on or after 6 April 2025 for Income Tax and for Capital Gains Tax, and 1 April 2025 for Corporation Tax and for Corporation Tax on chargeable gains.
Existing rulesÌý
Capital Gains Tax rules are applied to FHLs as if they were a trade.ÌýÌý
You can get more information on how CGT rules apply to FHLs in the following helpsheets:Ìý
Helpsheet 296 Debts and Capital Gains Taxâ€�(°Õ³ó¾±²õ helpsheet includes information on relief for loans to traders, here the relief is for the person who makes the loan).Ìý
Treatment after repealÌý
»Ê¹ÚÌåÓýapp special treatment of furnished holiday lettings (FHL) for capital gains purposes no longer applies from 6 April 2025 and there are rules to deal with the consequences for the reliefs see -CG73505 - Furnished holiday lettings: consequences of abolition - HMRC internal manual - GOV.UK