The Bright Side of Change – Budget 2024 and Furnished Holiday Let Tax Abolishment

Holiday Let tax changes, do they affect you? Furnished Holiday lets tax is due to be abolished by April 2025. Find out if this affects you with the award winning My Getaways.

Last week on Wednesday 6th March 2024 the founder of My Getaways, Steve Taggert was invited to the houses of parliament to watch the budget being presented live to the nation. 

It brought a whirlwind of news and changes in the property world, including us as short-term let owners and professional property managers. The Chancellor Jeremy Hunt decided to abolish the Furnished Holiday Let tax regime and it’s completely understandable if your initial reaction was a bit of a worry. But here’s why you shouldn’t panic and instead look at the bright side of this change, particularly if you’re part of the My Getaways family.

Understanding the Changes

From April 2025, if your holiday let property is in your personal name, you’ll notice a shift in how mortgage interest relief is claimed. Instead of the previous method, you’ll align with standard buy-to-let owners, claiming a 20% tax relief on the total value of Mortgage interest. If you earn under £50,270, this will make no difference at all, however if you are a 40% tax payer you will lose 50% of your mortgage interest tax relief on any earning over the basic rate tax band. Now, this might seem like a big leap, but there’s a silver lining here that’s too good to overlook.

Heres some examples:

  1. Angela – Angela earns £30,000 per annum from her job plus an additional £12,000 per year from her Airbnb holiday let, bringing her total taxable income up to £42,000 per annum. As Angela’s combined income is less than £50,270, she is still a basic rate taxpayer and therefore will not pay any additional tax with the changes from the budget.
  1. Robert – Robert earns £70,000 per annum from his job plus an additional £20,000 profit from his Airbnb holiday let, bringing his total taxable income to £90,000. His mortgage interest is £2,500 a year. Currently, Robert will reduce his holiday let profit by the £2,500 mortgage interest and therefore this gives him 40% tax relief, so £1,000 off his tax bill. 

Going forward the mortgage interest won’t reduce profits and instead, he gets 20% tax relief on £2,500 so he will get £500 off his tax bill.

As you can see from my examples, the budget announcement has a marginal effect on Robert who will pay £500 more tax, but Angela will pay exactly the same amount of tax as she did before the budget changes.

For those who’ve wisely placed their holiday lets in a limited company, breathe easy! These changes will gently graze past you, leaving your financials as flourishing as ever.

As explained in the examples above, the change that affects 40% taxpayers is marginal and should be easily outstripped by the additional revenue generated as a holiday let listed on sites like Airbnb and vs standard assured shorthold tenancy, therefore DON’T PANIC!

Capital Allowances: Your Golden Ticket

Let’s chat about capital allowances, the not-so-secret weapon in the tax benefits arsenal for holiday lets. The buzz around the budget announcement didn’t explicitly mention any changes to capital allowances, giving you a window of opportunity to make your claim and potentially save on years’ worth of income tax on your property. Given the proposed adjustments to mortgage interest relief from 2025, acting swiftly on capital allowances could be a game-changer, locking in significant tax savings and remember My Getaways have in-house expertise in Capital Allowances and can help you navigate the route to tax free income!

The Market’s New Landscape

Change, while daunting, breeds opportunity. With the upcoming tax regime adjustments, we anticipate a trimmer holiday let market. Fewer properties mean less competition for you, and with our inside scoop and expert management, we’re poised and expect to maximise your average daily rate in the not to distant future. More demand chasing fewer properties equals a brighter outlook for your investment.

If your circle is buzzing with concerns over the budget’s impact, remember, we’re just a call away. Sharing is caring, and we’re here to guide anyone in need through these shifting sands with professional advice and our award-winning touch. Find out how much your Brighton & wider Sussex area property could generate as a holiday let here.

Embracing Change with My Getaways

Navigating through these changes might seem like steering a ship through foggy waters, but with My Getaways at the helm, you’re in for a smooth sail. Our expertise and proactive management are all about turning challenges into opportunities, ensuring your holiday lets not only survive but thrive in this new era.

Considering diving into the holiday let world and having your property listed on sites like Airbnb and There’s no better time than now, and no better team than the Award Winning My Getaways to help you unlock extra income, flexibility, and property value.

Change is on the horizon, but together, we’ll harness it for your benefit. Get in touch with us, your short stay experts, and let’s chart a course to success in this exciting new chapter.


  1. Get in touch with My Getaways today on 01273 917909 or check out our rent your property page to find out how much more revenue you can earn with your properties as a holiday let on Airbnb and many other platforms.
  2. Speak to us to find out how to start you capital allowances claim and enjoy several year’s worth of tax free income.
  3. DONT PANIC! My Getaways have you covered.

Expert partners of My Getaways

At My Getaways, we’re proud to collaborate with a fantastic network of expert partners, all dedicated to making sure that our owners enjoy not just hassle-free management of their holiday lets, but also the most reliable advice in our field. For this blog, our savvy tax planning and accounting partners at Collective Concept have diligently reviewed and verified our advice for its accuracy. Should you find yourself in need of further guidance, please feel free to reach out to Chris Barnard at . Chris and the team are well-equipped to offer you top-notch advice on optimising your holiday let tax planning.

Written by Steve Taggert

Founder of My Getaways

12th March 2024

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