PUBLICATION DATE: MARCH 2024
PAGES: 101
EDITION: 1st
ISBN: 9781911020929
READ CONTENTS & FIRST SECTION

Furnished Holiday Lets:
Big Changes Ahead

By Carl Bayley BSc FCA

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

Unfortunately, Chancellor Jeremy Hunt announced the abolition of this special tax regime in the March 2024 Budget.

The good news is these changes won't take effect until April 2025, which means there's still time to take action to make full use of the existing tax benefits while they last.

However, the Chancellor also announced another major property tax change which may require more timely action: the abolition of stamp duty land tax multiple dwellings relief. This change takes place on 1st June 2024 and affects some of the tax planning measures discussed in this guide - owners of furnished holiday lets may have to act quickly to maximise the potential tax savings.

This unique new guide is packed full of tax planning measures that could save you tens of thousands of pounds now and in the years ahead.

What Information is Contained in the Guide?

Subjects covered include:

• A detailed look at all the current tax benefits of furnished holiday lettings.
• How to maximise the income tax benefits of the current regime before it’s too late and minimise the cost of the changes.
• The many capital gains tax reliefs available including:
• Business Asset Disposal Relief (10% capital gains tax)
• 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.
• 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.
• How to enjoy huge stamp duty savings before multiple dwellings relief is abolished on 1st June 2024.
• How to restore all the benefits of the furnished holiday letting regime by providing additional services and achieving ‘trading status’.
• Why now is the ideal time for furnished holiday let owners 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 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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