The Abolition of the Furnished Holiday Lettings Tax Regime

The CLA has responded to a consultation on the draft legislation to abolish the Furnished Holidays Lettings (FHL) tax regime. This is due to be included in the Finance Bill that will be introduced into parliament after the 30 October Budget.

The CLA has strongly opposed this decision, arguing that it would have a devastating impact on the tourism industry, particularly in rural areas. In our response we criticize the government's inadequate impact assessment, which fails to consider the consequences for rural, unincorporated, and women-led businesses. The CLA has recommended that the government conducts a more comprehensive analysis of the impact of withdrawing this FHL tax regime. If the government proceeds with the abolition, it should do so with a phased implementation over several years, allowing businesses to adjust gradually.