Searches on Google for ‘furnished holiday let tax changes’ rose by 1300% after the UK Government announced the Furnished Holiday Letting (FHL) tax regime will be abolished starting 6 April 2025, research from Intasure has found.
Intasure, a Gallagher company specialising in holiday home insurance, highlighted the effects of this change on holiday let owners and the importance of updating insurance policies.
With 257,000 homes in England registered as short-term lets, many owners are now seeking information on how the changes will affect them financially.
Andy Hale, holiday home specialist at Intasure, said: “Short-term holiday lets comprise a significant portion of UK properties, making it crucial for second homeowners to be aware of changes to the Furnished Holiday Let tax relief.
“This awareness is essential to help prepare for additional costs that may accompany its abolishment.
“Short-term let owners should seek professional advice to explore additional reliefs available to them and transition effectively.
Hale added: “During this process, it’s essential to confirm that your current insurance on your second home fully covers you to protect against potential capital loss.
“Owners who rent out their second homes may need additional holiday let insurance alongside standard holiday home insurance.
“If the operation of your holiday let changes due to the abolishment of the FHL tax regime, it’s important to inform your insurer to ensure your home remains adequately covered.”
