The Furnished Holiday Lettings tax regime was abolished from 6 April 2025. Short-term let income is now treated as ordinary property income. The main changes are:

• Mortgage interest is restricted to a 20% basic rate tax credit rather than being fully deductible.
• Capital allowances on furniture and equipment are no longer available.
• Business Asset Disposal Relief on property sales no longer applies to holiday let properties.

Since January 2024, platforms including Airbnb report host income directly to HMRC under the Sharing Economy Reporting Regime.