For anyone who owns one or more Furnished Holiday Lets (FHLs), either directly or through a limited company this is a significant change. Until April 2025, if an individual owned and let out a furnished holiday let, broadly a holiday home let out to different individuals for short periods, there were a number of tax advantages that in many respect treated this activity as a trade rather than as an investment:
The new rules that apply from April 2025 are proposed to operate for income tax purposes such that if a non UK domiciled individuals comes to live in the UK after a period of 10 years consecutive non-residence, there will be full tax relief for a 4-year period of subsequent UK tax residence on FIGs arising during this 4-year period, during which time this money will remain outside the UK tax net and can be brought to the UK without an additional tax charge.
For start up businesses, it is important to think very carefully about who initial “founder” shares are issued to and consider future “what if” scenarios and how they might be dealt with.
The succession of the farm is often on the minds of those of whose farm has been in the family for many generations. Not only is it a wish that they would like the farm to continue within the family but also to provide an inheritance to any of their non farming children.
The Government’s response to consultations on holiday pay for irregular hours workers has simplified the process. The new ruling effective from 1st April 2024, reinstates the 12.07% calculation method. This means that for every hour worked by staff, they accrue holiday leave and pay at a rate of 12.07%.
In a bid to tighten tax regulations and combat tax evasion, HMRC has introduced legislation that will impact sellers on platforms such as eBay, Vinted, Etsy Airbnb and Uber. As of 1 January 2024, many digital platforms are now mandated to collect and share transaction and seller details with HMRC