FHL tax regime changes from April 2025

Hi, I can see from the documents posted at the following URL . . . https://www.gov.uk/government/publications/furnished-holiday-lettings-tax-regime-abolition#full-publication-update-history that as a result of the 2024 Spring Budget, there is draft legislation to bring the FHL tax regime in line with long term property rentals tax regime. Please can you confirm has this legislation actually been passed/approved and implemented and will come into force from April 2025. Specifically, is a new claim for embedded capital expenses now no longer possible? Understanding that existing claims for embedded capital expenses in place before 5/5/25 will carry forward. Regards Mike

Hi,
The legislation passed as part of the budget.  The new rules will come into force from 06/04/2025.  
No a new claim for embedded capital allowances cannot be accepted on or after 06/04/2025.  
Existing claims for embedded capital allowances can be carryed forward.  
Where qualifying capital expenditure has been included in a capital allowance pool by 5 April 2025 writing down allowances, balancing allowances and charges can continue to be claimed after April 2025 on that pooled expenditure until it is used up or a small pool claim is made.
The guidance is here:
Clarification on abolition of the furnished holiday lettings tax regime
Thank you.

Thank you. You say a claim must be submitted by 5th April 2025. I would normally claim for allowable expenses etc. as part of completing my Tax Return for the 24/25 tax year which obviously cannot be filled in u til after 5th April 2025 Is the procedure for applying for embedded capital allowances different to simply putting the figure on the Tax Return ? Is there a particular form to complete and submit by 5th April 2025 ? Thanks in advance Mike

Hi ,

Thank you for your question. Any allowable expenses that you wish to claim for 2024/25 can be entered on your tax return on the normal way. You don't need to give any details prior to 5 April 2025.   Thank you .