What are Furnished Holiday Lettings (FHL)
Furnished Holiday Let Accountant
Running a furnished holiday let comes with more than managing bookings and guests. You also need to keep accurate financial records, understand property income tax rules, track allowable expenses and stay on top of changing HMRC requirements.
At CoreAdviz, we provide accounting and tax support for furnished holiday let owners and holiday property businesses across the UK. Whether you own one holiday property or a growing portfolio, our accountants can help you manage your property finances, prepare tax returns and understand the tax implications of your holiday letting activities.
Accounting and Tax Support for Holiday Let Owners
If you are looking for a furnished holiday let accountant, CoreAdviz can help you manage the accounting side of your holiday property business.
Our support can include:
* Holiday let accounting and bookkeeping
* Self Assessment and property income reporting
* Preparation of tax calculations and tax returns
* Allowable property expense tracking
* Mortgage and finance cost tax considerations
* VAT guidance for holiday accommodation
* Capital expenditure and property improvement advice
* Capital Gains Tax considerations when selling a holiday property
* Income and expense reconciliation
* Property portfolio accounting
* Tax planning for property owners
* Ongoing HMRC compliance support
The tax treatment of furnished holiday accommodation changed significantly from April 2025. The previous Furnished Holiday Lettings tax regime was abolished, so it is important that your accounts and tax returns reflect the rules that apply now rather than relying on historic FHL tax treatment.
Furnished Holiday Let Tax Rules After April 2025
The special Furnished Holiday Lettings tax regime ended from 6 April 2025 for individuals and from 1 April 2025 for Corporation Tax purposes.
This means that properties that previously qualified as furnished holiday lettings are generally treated as part of the relevant UK or overseas property business under the current rules.
The change removed several tax advantages that were previously available to qualifying FHL properties, including the previous special treatment of finance costs, capital allowances and certain Capital Gains Tax reliefs.
However, the end of the FHL regime does not mean that holiday letting itself has ended or that you have to stop operating your property as holiday accommodation.
Yes, when you purchase a furnished holiday let, you have to pay Stamp Duty Land Tax (SDLT) at a higher rate. It is called Higher Rates on Additional Dwellings (HRAD) by the HMRC.
No, Holiday Lets available for the public for self-catering commercial accommodation for 20 weeks or more in a year are not subjected to council tax. They are subjected to business rates.
Yes, if you are an FHL owner, you will get tax relief under the Furnished Holiday Let Capital allowance. The allowance can be claimed on movable and immovable items of your holiday let.
No, a furnished holiday let falls under a separate category. According to HMRC, it is qualified as a trading business. So, it is neither considered a residential property nor a commercial property.
Yes, when you purchase a furnished holiday let, you have to pay Stamp Duty Land Tax (SDLT) at a higher rate. It is called Higher Rates on Additional Dwellings (HRAD) by the HMRC.
No, Holiday Lets available for the public for self-catering commercial accommodation for 20 weeks or more in a year are not subjected to council tax. They are subjected to business rates.
Yes, if you are an FHL owner, you will get tax relief under the Furnished Holiday Let Capital allowance. The allowance can be claimed on movable and immovable items of your holiday let.
No, a furnished holiday let falls under a separate category. According to HMRC, it is qualified as a trading business. So, it is neither considered a residential property nor a commercial property.
To maintain an accurate record of income and expenses as an FHL owner, you must have a business account for your holiday let.
Yes, income from holiday lets is subjected to VAT at the standard rate of 20%.
Our Support
We are a renowned accounting agency for FHL Owners and offer quality assistance and accounting services in compliance with the evolving rules and regulations. Our support services include the following ones:
How CoreAdviz Helps Furnished Holiday Let Owners
As accounting consultants for FHL, we would suggest you with the following
Holiday Let Bookkeeping
Keeping accurate records is essential when you receive income from bookings and incur costs relating to your property.
We can help you organise and reconcile income and expenses such as:
* Booking platform and letting agent fees
* Cleaning and laundry costs
* Utilities
* Repairs and maintenance
* Insurance
* Property management costs
* Advertising and marketing
* Professional fees
* Other allowable property-related expenses
Good bookkeeping gives you a clearer picture of the actual performance of your holiday property.
Property Income and Tax Returns
Your holiday letting income needs to be reported correctly under the tax rules applicable to your circumstances.
Our accountants can help you calculate your property income and allowable expenses and prepare the relevant tax reporting, including Self Assessment where applicable.
We can also help you understand how holiday property income interacts with your wider personal or business tax position.
Tax Advice for Holiday Property Owners
Tax treatment can vary depending on how the property is owned and operated.
For example, the tax position can be different where a property is owned:
* Personally
* Jointly with another person
* Through a company
* As part of a wider property portfolio
We can help you understand the accounting and tax implications of your ownership structure and identify issues that should be considered before making significant financial decisions.
VAT Advice for Holiday Accommodation
Holiday accommodation can have VAT implications.
Holiday accommodation is generally subject to VAT at the standard rate where VAT applies, so it is important to establish whether your holiday letting activity creates VAT registration or reporting obligations.
Our accountants can help you review your turnover and circumstances and understand the VAT requirements applicable to your holiday accommodation business.
Why Choose CoreAdviz as Your Furnished Holiday Let Accountant?
Managing a holiday property can involve multiple income streams, regular expenses and changing tax requirements.
CoreAdviz provides accounting and tax support designed around property owners and small businesses.