CG65090 | Private residence relief: furnished holiday lettings: rolled-over gain

Throughout this manual, all legislative references are to Taxation of Chargeable Gains Act 1992 (“TCGA92”) unless otherwise stated.

Section 241(6)

The special treatment of furnished holiday lettings (FHL) for tax purposes no longer applies from 6 April 2025 (1 April 2025 for Corporation Tax purposes). The consequences of the abolition for capital gains purposes are explained at CG73505.

The cost of acquisition of a dwelling-house may have been reduced under sections 152or 153 if the dwelling-house

• has been taken into use as furnished holiday accommodation, and

• has qualified as a replacement asset.

If the dwelling-house has subsequently been used as its owner’s only or main residence, then any relief on disposal should be restricted by the amount deducted from the acquisition cost. This is illustrated by the example at CG60287.