Insights
Practical writing on the tax, VAT, MTD, rating and compliance questions that come up on short-term let and holiday let portfolios — with the primary sources cited, and dated so you can see when we wrote it.
After 6 April 2025 the FHL regime is gone. This piece answers three reader questions: what happens to an existing pool, what qualifies when you replace items, and when a specialist review is worth commissioning.
From 6 April 2026 a combined £2.5m APR/BPR allowance applies to qualifying property at 100% relief, with 50% relief above. The allowance is transferable between spouses. STL properties themselves rarely qualify — eligibility, not the cap, is the first question for most owners.
The tax gap between personal ownership and Ltd ownership has widened for higher-rate borrowing operators post-FHL. Retention vs extraction of profits, transition costs and future rate changes all matter. This is a model-dependent decision, not a rule of thumb.