PUBLICATION DATE: DEC 2024
PAGES: 123
EDITION: 2nd
ISBN: 9781917392006
READ CONTENTS & FIRST SECTION

Furnished Holiday Lets:
Big Tax Changes Ahead

By Carl Bayley BSc FCA

Owners of furnished holiday lets (including many airbnbs) currently enjoy a special tax regime, allowing them to pay less income tax and capital gains tax than other landlords.

Unfortunately this special tax regime will be abolished in April 2025, as confirmed by Chancellor Rachel Reeves in her October Budget.

The good news is there's still time to take action to make full use of the existing tax benefits before they're taken away.

This unique guide tells you everything you need to know. Prompt action could save you many thousands of pounds now and in the years to come.

This new second edition (published December 2024) includes a great deal of information on issues that were unclear at the time of the original announcement, including valuable extensions to CGT reliefs beyond April 2025.

What Information is Contained in the Guide?

Subjects covered include:

• All the current tax benefits of furnished holiday lets explained in plain English.
• The latest proposals published in the October Budget and HMRC guidance issued in November.
• How to make the most of all the income tax benefits of the current regime.
• The many capital gains tax reliefs currently available including:
• Business Asset Disposal Relief (10% capital gains tax this year)
• Rollover relief (allowing you to sell properties and reinvest without paying CGT)
• Holdover relief (allows properties to be gifted with no immediate CGT bill)
• Incorporation relief (allows properties to be transferred into a company tax free)
• How to save up to £140,000 in capital gains tax by making the most of the current tax reliefs.
• How to completely avoid CGT by gifting a property to a family member to use as their home.
• How some furnished holiday lets can be sold after April 2025 and still benefit from reduced CGT.
• How CGT can be avoided by reinvesting in business property.
• Critical action many married couples need to take so their profits are split correctly for tax purposes.
• Why now is the time to invest in new furniture and equipment, even new properties, and the massive savings available.
• How to claim ‘forgotten’ reliefs on properties bought years ago.
• Why furnished holiday let owners should maximise their pension contributions this year.
• The benefits and drawbacks of transferring your property business into a company.
• Why company owners will be able to continue enjoying many of the existing tax benefits.
• Recent and forthcoming changes to stamp duty land tax and how these impact tax planning.
• How to enjoy huge stamp duty savings by forming a partnership.
• How to restore all the benefits by providing additional services and achieving ‘trading status’.
• Why now is the ideal time to pass properties to family members: in one example a mother and son are able to save almost £1 million in inheritance tax and over £140,000 in CGT!

All in all, this guide tells you everything you need to know about saving tax now and in the future if you own furnished holiday lets.

Click here to read the full contents listing and first section of the book

About the Author

Carl began his career as a chartered accountant over 40 years ago and is now one of the country's most respected tax experts. He was Chairman of the Tax Faculty at the Institute of Chartered Accountants in England and Wales (ICAEW) from 2015 to 2018 and served as a member of the institute's governing council for almost 20 years between 2003 and 2023. He has written over 20 plain-English tax planning guides and has contributed to newspapers including The Times and The Telegraph, as well as TV and radio programmes such as BBC Radio 2's Jeremy Vine Show.

Carl enjoys his role as a tax author: "The most satisfying part is the chance to give everybody a high standard of information at a very affordable price". As he often says: "My job is to translate tax into English".

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This comprehensive tax guide contains around 130 pages of tax saving tips. The latest edition includes all major tax announcements made in the October 2024 Budget.

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