The Chancellor set out measures to remove tax incentives for short term landlords, bringing the regime in line with the rules for landlords who are letting out properties longer term from April 2025.

The current tax rules apply to owners who let out the properties for more than 210 days a year. There are an estimated 300,000 furnished holiday lets in the UK.

The access to capital gains tax (CGT) relief will be abolished as of 6 March 2024 as well as any beneficial capital allowances. Also, it will no longer be possible to claim the exemption from finance cost restriction rules and the need to include relevant earnings when calculating maximum pension relief.