My client currently operates a furnished holiday let (FHL) which will transition to a regular UK property business with the upcoming changes from April 2025.

What are the different considerations for business asset disposal relief (BADR) if the client were to dispose of the property before or after April 2025?

A: Our current understanding of the abolition of the FHL rules is based on draft legislation, which may be subject to change.

For FHL businesses to qualify for BADR they must meet certain as outlined by s241(3A) Taxation of Chargeable Gains Act 1992 (TCGA).