FHL Tax Calculator 2025/26
How to Use This Calculator
Total annual rental income from your furnished holiday let.
The annual interest (not capital) on your FHL mortgage — relief now restricted to 20% basic rate credit.
Allowable expenses: cleaning, maintenance, insurance, letting agent fees, council tax.
Choose your marginal income tax rate to see the correct tax calculation.
Frequently Asked Questions
What changed for FHL from April 2025?
The furnished holiday let regime was abolished from 6 April 2025. FHLs are now taxed the same as regular rental income. Mortgage interest relief is restricted to a 20% basic rate tax credit, like standard buy-to-let properties.
Can I still claim capital allowances on FHL furniture?
From April 2025, FHLs can no longer claim capital allowances on furniture and equipment (previously a key advantage). You can claim a 10% wear and tear allowance or actual replacement costs.
What counts as a furnished holiday let?
A property must be available to let for at least 210 days per year, actually let for 105 days, and not occupied by the same person for more than 31 consecutive days.
Is FHL income still earnings for pension purposes?
No. From April 2025, FHL income is no longer treated as earnings for pension contribution purposes — one of the major changes that removed this tax advantage.
Can I still use the Rent a Room scheme?
The Rent a Room scheme (£7,500 exemption) applies to letting rooms in your main home, not to separate FHL properties.
How does FHL affect Capital Gains Tax?
FHLs previously qualified for Business Asset Disposal Relief (10% CGT). From April 2025, this relief is no longer available on FHL disposals — you pay standard residential CGT rates (18%/24%).
What allowable expenses can I still claim?
You can still deduct: letting agent fees, cleaning, maintenance and repairs, insurance, utility bills (if you pay), council tax, and mortgage interest (at 20% basic rate relief only).
Should I consider selling my FHL property?
The removal of tax advantages has made many FHLs less profitable, especially for higher-rate taxpayers with mortgages. Consider taking tax advice — the decision depends on your overall portfolio and personal tax position.