NEW FHL TAX QUESTIONS

I have a new holiday let which is likely to qualify for FHL status by the end of the 24-25 tax year. My first rental began on 30/3/24 First payment received 4/5/24 For which year should I submit my first self assessment ? Also I'm being encouraged to spend a considerable amount on professional fees to submit a claim for embedded capital allowances by April 2025. I'm very unclear about whether I can just include these my self in my 24-25 tax return under capital allowances ? thank you

Hi ,
 

Thank you for your question.  From April 2025 FHL’s will be treated the same as normal rental properties, so will lose the benefit of Capital Allowances that could be claimed under FHL status. More information can be found on our website at : Abolition of the furnished holiday lettings tax regime  . Where an existing FHL business has an ongoing capital allowances pool of expenditure, they can continue to claim writing-down allowances on that pool. Any new expenditure incurred on or after the operative date must be considered under the property business rules.  These rules only come in from 6 April 2025.  The current rules for FHL’s can be found at :  PIM4100 - Furnished holiday lettings: contents  and can still apply until 5 April 2025.  It is ultimately up to you to claim what is allowable per the current guidance .   Thank you .