The Furnished Holiday Lettings (FHL) tax regime was abolished from 6 April 2025. Under the old rules, qualifying holiday lets were treated similarly to a trading business, providing access to capital allowances on furniture and equipment, unrestricted mortgage interest deductions, Business Asset Disposal Relief (giving a 10% CGT rate), and Rollover Relief. All of these are now gone. From 2025-26, holiday let income is treated as ordinary property income, the same as a standard buy-to-let. Mortgage interest is now restricted to a 20% basic rate tax credit for individual landlords, and the only furnishings relief available is Replacement of Domestic Items for like-for-like replacements.