Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department has taken steps to support farmers who have diversified into holiday accommodations to mitigate the potential financial impact of changes to the Furnished Holiday Lettings tax regime.

The Government will abolish the Furnished Holiday Lets (FHL) tax regime from April 2025. This will equalises the tax treatment of FHL and non-FHL landlords’ income and gains, making the tax system fairer.

Tax reliefs will still be available to landlords, including farmers, who provide furnished holiday letting services, including mortgage interest relief at 20 per cent and relief for the replacement of domestic items. These reliefs will be at the same level as those available to landlords who provide long-term residential lets.

Individual landlords can also benefit from the income tax Personal Allowance, which is the amount of income that can be earned before income tax is paid (£12,570 in 2024-25).