Spring Statement reaction from Shaun Davison, Lovewell Blake.

The abolition of Furnished Holiday Lettings relief will have major implications for our region, a major tourist hotspot.

The relief essentially allows owners of furnished holiday lets to treat them as a business rather than an investment, enabling beneficial tax breaks for expenses, as well as access to the 10pc Business Asset Disposal Relief (BADR) rate when it comes to disposal of the business, provided certain conditions are met.

Eastern Daily Press: Shaun Davison, manager at Lovewell BlakeShaun Davison, manager at Lovewell Blake (Image: Newman Associates PR)
From April 2025 (so it won’t affect this season), furnished holiday lets will be treated the same as long-term residential lets, with limits on mortgage interest relief and full capital gains tax payable on disposal. Landlords must now review the potential viability of their businesses under the new regime.

The implications for Norfolk’s tourism industry could be severe. The move could lead to many landlords either selling up or moving their properties to the long-term residential lettings market.  There will be those who may view this as a good thing, but tourism is the biggest employer in our county bar none.