12/02/2026
The Furnished Holiday Lettings regime changed in April 2025.
What did not disappear is the ability to claim capital allowances on qualifying expenditure incurred before that date.
Where an FHL property was acquired or refurbished in the last two tax years prior to the change, qualifying expenditure may still attract full Annual Investment Allowance, subject to the prevailing limits.
Expenditure incurred earlier can continue to be relieved through Writing Down Allowances in the appropriate pool.
If historic expenditure was never properly reviewed for embedded plant and fixtures, the opportunity may still exist.
The regime may have changed, but unclaimed capital allowances do not automatically vanish.
If you own a furnished holiday let, or advise clients who do, now is a sensible time to review whether capital allowances have been fully identified and claimed. Feel free to get in touch for an initial discussion.