PIM4190 - Repeal of Furnished Holiday Lettings rules - Jointly let property

The furnished holiday lettings rules cease to apply in tax years commencing on or after 6 April 2025 for Income Tax and for Capital Gains Tax, and 1 April 2025 for Corporation Tax and for Corporation Tax on chargeable gains. This is subject to Royal Assent.

The abolition of the FHL provisions mean that holiday lettings are now treated the same as other property income. The share of any profit or loss arising from jointly owned property will normally be the same as the share owned in the property being let. But joint owners can agree a different division of profits and losses and so occasionally the share of the profits or losses will be different from the share in the property. The share for tax purposes must be the same as the share actually agreed.

However, where the joint owners are husband and wife, or civil partners, profits and losses are treated as arising to them in equal shares unless both of the following apply:

  • entitlement to the income and the property are in unequal shares
  • spouses, or civil partners have informed HMRC that their share of profits and losses is to match the share each holds in the property

This can be declared by using Form 17, which must be submitted to HMRC within 60 days of your declaration of unequal shares — Declare beneficial interests in joint property and income