Furnished Holiday Let (FHL)
UK tax glossary · Last reviewed: April 2026
The Furnished Holiday Lettings (FHL) tax regime was abolished from 6 April 2025. Properties previously classified as FHLs are now treated as ordinary property lettings. This removed the ability to claim full mortgage interest relief, capital allowances, pension contribution eligibility based on FHL income, and access to some CGT reliefs (BADR, rollover).
Before abolition, FHL properties had to be available for at least 210 days per year and commercially let for at least 105 days. These occupancy tests and the associated tax advantages no longer exist.
Landlords who previously relied on FHL status should review their tax position. Properties may need to be reclassified; unused losses from the FHL pool could be stranded. Professional advice is recommended for anyone with multiple short-term let properties.
Common questions
What happens to capital allowances I claimed on an FHL property?
Balancing allowances or balancing charges may arise when the FHL regime ended on 5 April 2025. The treatment depends on whether you continue letting the property under the general letting rules.
Can I still use Airbnb for short-term lets after FHL abolition?
Yes — short-term letting is still legal and taxable as property income. You simply lose the specific FHL tax advantages; income and expenses are reported on SA105 like any other rental property.
Related resources
TaxHelper provides general information based on published HMRC rates and guidance. It is not regulated financial or tax advice. For decisions involving significant sums, complex circumstances, or if you are unsure, speak to a qualified accountant or HMRC directly.