Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of changes to the Furnished Holiday Let tax regime on rural tourism businesses.

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.

The Government wants to support visitor accommodation alongside housing for longer-term residents to rent or buy. Achieving this balance is crucial in supporting the tourism sector and many of the people that work in the sector, who need access to local housing.

Draft legislation to abolish the FHL tax regime was published on 29 July 2024, providing businesses and other parties across the UK - including Scottish stakeholders - an opportunity to share their views on the changes with the Government.