The abolishment of Furnished Holiday Lets
It was previously announced that the Furnished Holiday Let (FHL) tax regime would be abolished from April 2025. This has been further confirmed following the Autumn budget, by an update to the policy papers and the draft legislation.
This abolishment will remove the various tax advantages of short term holiday lets, from both an income tax and capital gains tax perspective.
We have previously provided a breakdown of the potential impacts of the abolishment, this can be found here:
https://www.randall-payne.co.uk/expert-opinion/tax-policy-released-on-furnished-holiday-lets/
Increases to Stamp Duty Land Tax
Anyone buying an additional residential property in England is subject to higher rates of Stamp Duty Land Tax (SDLT). This previously equated to an extra 3%, however, this additional charge is now being increased to 5% with effect from 31 October 2024 i.e. a 2 percentile point increase.
This measure also applies to the purchases of residential properties by companies and to the single rate of SDLT payable by companies and other entities when purchasing residential property worth more than £500,000 (where the rate will increase from 15% to 17%).
If you have any questions about how the budget or its proposed reforms might affect you, do get in touch on 01242 776000 or tax@randall-payne.co.uk.
