Spring Budget 2024, holiday let tax changes

Spring Budget 2024, holiday let tax changes

Spring Budget 2024, holiday let tax changes… It’s a mix of good and bad news for owners

The Chancellor has officially confirmed that the government will be reducing the financial benefits that holiday let owners currently enjoy. One of the key announcements in relation to holiday lets is the proposal to abolish the £300 million furnished holiday letting scheme from April 2025. This abolition will eliminate specific allowances, thereby potentially reducing profitability for owners of holiday lets.

People who generate supplementary income from their second homes, for example by listing them on platforms like Airbnb, will be impacted by these changes. Consequently, investing in holiday lets may become less financially rewarding.

Previously, landlords could take advantage of a tax relief of up to £4,000 annually when earning £30,000 a year in rental income. However, critics have raised concerns about the potential adverse effects this measure may have on areas heavily reliant on tourism for their economic sustenance.

We are currently awaiting clarification on the legislation regarding claiming Capital Allowances beyond the upcoming deadline. In the meantime, there remains an opportunity for you to still access tax relief for your holiday let and serviced accommodation properties.

For more information on Capital Allowances Tax Relief and how you may beat the Budget changes, please get in touch. Alternatively, if you’d like information on Holiday Let Mortgages, please visit the Wattsford Commercial Finance website.