PIM4185 | Repeal of Furnished Holiday Lettings rules : Capital Gains Tax Reliefs

The 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 rules

Capital Gains Tax rules are applied to FHLs as if they were a trade.

You can get more information on how CGT rules apply to FHLs in the following helpsheets:

• Helpsheet 275 Business Asset Disposal Relief.

• Helpsheet 290 Business Asset Rollover Relief.

• Helpsheet 295 Relief for gifts and similar transactions.

• Helpsheet 296 Debts and Capital Gains Tax (This helpsheet includes information on relief for loans to traders, here the relief is for the person who makes the loan).

Treatment after repeal

The 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