Losses on Furnished Holiday Let

A furnished holiday let ceases in 2022/23 with losses brought forward. There are no other FHL properties however there is a rental property. Under the abolition of FHL, can these losses be carried forward to be used against non-FHL property income from 1st April 2025?

Hi,
Under current rules a loss generated from a FHL property business can only be carried forward and utilised against future profits of that same FHL business. After the changes, former FHL properties will be part of the person’s UK or overseas property business as appropriate, that property business will then include the amalgamated profits and losses of all the properties in that business.
Persons may have losses to carry forward from their FHL business after repeal, losses generated from this FHL business will be permitted to be carried forward and be available for set off against future years’ profits of either the UK or overseas property business as appropriate.
You can see further information concerning the abolition of the furnished holiday lettings tax regime here:
Clarification on abolition of the furnished holiday lettings tax regime
Thank you.

Thank you, However if the FHL business ceased before the date of abolition, can these losses still be carried forward against other property income?

Hi,
If the FHL business ceases before the change, so you no longer own the property that attracted FHL status, you cannot carry the losses forward to be used against other rental income. You can see guidance here:
Abolition of the furnished holiday lettings tax regime
Thank you.