Important Tax Changes for Furnished Holiday Let Owners in Kent: Expert Guidance from Gravesend Accountants

As Gravesend's trusted accountancy firm specializing in property tax, we're helping Kent-based holiday let owners navigate the significant changes coming to Furnished Holiday Letting (FHL) rules from April 2025. Whether you operate a holiday let in Kent's coastal towns or inland areas, understanding how these changes affect your tax position, particularly regarding Business Asset Disposal Relief (BADR), is crucial. Here's what local property owners need to know.

Understanding the 2025 FHL Changes for Kent Property Owners

From April 2025, FHL properties across Kent and the rest of the UK will be treated as standard rental properties for tax purposes. As experienced accountants serving the Gravesend and wider Kent area, we want to emphasize that this change in tax treatment doesn't automatically mean your business has ceased operating - it simply means the special FHL tax rules no longer apply.

Impact on Business Asset Disposal Relief for Holiday Let Properties

If you're considering selling your Kent-based FHL property, the timing could significantly impact your tax position. To benefit from BADR after April 2025, your FHL business must genuinely cease trading before 6 April 2025. Simply transitioning to a long-term letting business won't qualify as a cessation of trade.

Key Dates and Deadlines for Property Owners

For holiday let owners in Kent, if you cease your FHL business before 6 April 2025, you'll have three years to dispose of the property while still qualifying for BADR. However, be aware of anti-forestalling rules that apply to contracts made after 6 March 2024 with completion dates after 6 April 2025.

Anti-Forestalling Rules Explained

For sales contracts agreed after 6 March 2024 with completion after 6 April 2025, you'll need to prove:

• The contract wasn't made to avoid the new FHL rules
• Either the buyer and seller are unconnected, or the sale is purely for commercial reasons

Expert Support in Gravesend

As your local accountants in Gravesend, Kent, MCC Partners is here to help you navigate these important changes. Our team of property tax specialists can help you understand your options and plan the most tax-efficient strategy for your holiday let business. We're conveniently located at 1a Saddington Street, Gravesend, DA12 1ED.

For personalised advice about how these FHL changes affect your Kent property business, contact our Gravesend office at This email address is being protected from spambots. You need JavaScript enabled to view it. or call us on 01474 619 990. Our experienced team is ready to help you make informed decisions about your property investments.