Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent discussions her Department has had with farming representatives on the potential impact of the Furnished Holiday Lettings tax scheme on farmers who have diversified into holiday accommodations.

The Government will abolish the Furnished Holiday Lettings (FHLs) tax regime from April 2025. This will equalise the tax treatment of FHL and non-FHL landlords’ income and gains.

Draft legislation to abolish the FHL tax regime was published on 29 July 2024, providing farming representatives and other businesses with an opportunity to share their views on the legislation with the Government.