Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether changes to taxation arrangements of furnished holiday lets will apply to purpose-built holiday lodges on sites designated for leisure and tourism purposes.

The Government has announced that it will abolish the Furnished Holiday Lettings (FHL) tax regime from April 2025, equalising the tax treatment of all individual FHL and non-FHL businesses. This will make the taxation of property fairer and simpler while raising revenue for vital public services. The changes will not penalise or prohibit the provision of FHLs more widely.

The status of individual businesses, and so the application of tax rules, will always depend on the specific facts of each case.

The Government keeps all aspects of tax policy under review and any decisions on future changes will be taken by the Chancellor in the context of the wider public finances.