Furnished Holiday Let Tax Calculator

A furnished holiday let (FHL) is a short-term holiday rental property in the UK that meets HMRC's qualifying conditions: available for letting ≥210 days, actually let ≥105 days, and not occupied by the same person for >31 consecutive days.

The property must be furnished, available for let at least 210 days per year, actually let to the public for at least 105 days, and no single occupier can stay longer than 31 consecutive days.

Pre-April 2025, FHLs benefited from: capital allowances on furniture/equipment, ability to offset losses against general income, CGT Business Asset Disposal Relief (10%), and pension contribution treatment. These ended from April 2025.

From 6 April 2025, the FHL tax regime was abolished. FHL properties are now taxed as standard residential rental income with standard residential CGT rules (18%/24%).

Capital allowances claimed before April 2025 continue. New purchases from April 2025 are covered by replacement domestic items relief instead, like other residential properties.

FHL profit = gross rental income minus allowable expenses (mortgage interest from April 2020 replaced by 20% tax credit), management fees, insurance, maintenance, and furnishing costs.

Airbnb income may qualify as FHL if the property meets the qualifying conditions. From April 2025, all short-term rental income is taxed as standard property income.

From April 2025, FHL disposals are taxed at 18%/24% residential property CGT rates. The previous 10% Business Asset Disposal Relief no longer applies.

FHL income is generally VAT exempt. However, if you provide significant additional services (cleaning, concierge, meals), it may constitute a taxable supply requiring VAT registration above the threshold.

Allowable expenses: mortgage interest (20% tax credit), lettings agent fees, cleaning, maintenance and repairs, insurance, council tax, and furnishings replacement (from April 2025).

Report on SA105 (UK Property) supplementary page of Self Assessment. Mark the property as FHL and enter gross income, allowable expenses, and resulting profit or loss.

Rent-a-room relief (£7,500 tax-free) is only for rooms in your own home, not standalone holiday lets. FHL does not qualify for rent-a-room relief.