The special tax regime for furnished holiday lets is being removed so, in future, they will be treated as any property income:
- Mortgage relief will be capped at 20%
- Capital allowances will no longer be available for purchase of new furniture and fixtures. Only replacement relief
- Business Asset Disposal Relief will no longer be available and no rollover relief for reinvested capital gains
- Profits will no longer count as relevant earnings for pension tax relief
- Income must be 50:50 UNLESS a Form 17 has been submitted beforehand showing unequal ownership.