Reconsidering Property Investments Post-Furnished Holiday Lettings Scheme Abolition?
If you are currently letting out a FHL under the current scheme for this year you may be aware that in the 2024 Budget, the chancellor announced that from April 2025, the FHL tax regime would be abolished.
This may raise concerns for those of you who are worried about the impact of reduced tax advantages and whether FHL’s remain a profitable option over standard buy-to-lets.
Although the attractive benefits of Capital Gains Tax relief and capital allowances for furnishings will no longer be available from April 2025, FHL’s do still have the potential to produce higher rental yields than standard buy-to-lets, especially in high demand areas during the holiday season.
However, despite this potential it is important to plan for the coming changes and review the performance of FHL’s while considering the revised tax structure to determine whether they remain the right option for you and your investment goals.
Here at PJCO we have a specialist property department, and if you need assistance starting your BTL journey, please feel free to book a free discovery call using the link below!
Please get in touch on 01273 441187 or book a discovery call with one of our expert accountants.
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