The Furnished Holiday Letting (FHL) regime has been abolished effective 6 April 2025.
Previously, married couples or civil partners could split FHL income in any proportion, regardless of actual ownership shares.
Now, income from jointly owned properties will default to a 50:50 tax split unless unequal beneficial ownership is declared.
To maintain an unequal income split, couples must:
1. Hold the property as tenants in common with unequal beneficial interests.
2. Jointly submit Form 17 to HMRC within 60 days of signing.
3. Note: Form 17 cannot be backdated and only affects income from the date of the last signature.
Example Scenario
Mark and Jess, a married couple, own an FHL property equally.
They previously split profits 90:10 in favour of Paul, a basic rate taxpayer.
Post-abolition, without action, profits will be taxed 50:50, potentially increasing their overall tax liability.
To retain the 90:10 split, they must adjust their ownership shares and submit Form 17 accordingly.
📣 Takeaway
If you’re a married couple or civil partners with jointly owned FHL properties and wish to maintain an unequal income split, review your ownership structure and consider submitting Form 17 to HMRC promptly.
Property income