At the end of July draft legislation was published confirming that the new UK Government will go ahead with the abolition of the Furnished Holiday Let (FHL) regime. Whilst this is unwelcome news for investors in this sector, there is a silver lining in that existing capital allowances and FHL losses can still be used after April 2025. Although the legislation is in draft and may be subject to change, it does give us a clearer picture of the proposed changes.
What does this mean for me?
FHL owners can continue to make capital allowances claims up until 5 April 2025. These claims can be made on any purchases or refurbishments of FHL properties that are still owned, regardless of when the projects took place. That means if you acquired a property 5 years ago and have not made any claims yet, it is not too late.
What should I do now?
Review your FHLs to see if you have made the most of the capital allowances available to you. At Wandsworth, we are happy to take a look at no cost to you to see if there is any benefit. On qualifying expenditure of £100k, the cash savings could be worth up to £45k to you, so drop us a line to see how much you could save.
