12/08/2024

The Furnished Holiday Let (FHL) Regime – Important Update

In collaboration with the Professional Association of Self-Caterers (PASC) and PKF Francis Clark (Chartered Accountants & Business Advisers), the Association of Scotland’s Self-Caterers (ASSC) has been actively lobbying the UK Government for critical changes to the proposed Abolition of the FHL.

Thanks to our collective efforts, we’re pleased to report that some concessions have been achieved, and we continue to advocate for further improvements.

FIND OUT MORE: Join the ASSC and PFK Francis Clark for a Virtual “Talk” (webinar) this coming Wednesday 14th August at 2:00 pm. Find out more.
The “Talk” will be recorded for members and available in the members’ area. Non-members can join for a small fee.

Please find below some of the updates thus far: On 29 July, Chancellor Rachel Reeves delivered a statement on the state of public spending and announcing the next Budget on 30 October 2024. This was accompanied by the publication of several documents, including a policy paper on the FHL Abolition, draft legislation for the abolition and, explanatory notes.

Key tax updates:

Finance costs – Interest on FHL mortgages will no longer be deductible in calculating taxable profits for those FHL owners subject to income tax.
Capital allowances – Capital allowances will no longer be available for expenditure incurred from 6 April 2025.
CGT reliefs – On the subject of CGT, the draft legislation results in a withdrawal of access to beneficial CGT reliefs
Pensions – The maximum pension scheme contribution that a taxpayer can obtain tax relief on in a single tax year is the higher of 100% of their UK relevant earnings and £3,600.

To read more on the recent updates click the button below.

Read the full news release here and find out about the latest updates…