FHLs qualify for capital-gains reliefs, mortgage-interest deduction and pension contributions, historically. The FHL tax regime is being abolished from April 2025, aligning treatment with standard BTL. Check local short-let restrictions (90-day cap in London, licensing in Scotland).
Also known as
FHL, Short-let
Related investment terms
More from this category
BTL
Buying residential property to rent to tenants.
Cash-on-cash return
Annual net cashflow as a percentage of the total cash you invested.
Gross yield
Annual rent as a percentage of property price, ignores costs.
HMO
A single house let to 3+ unrelated tenants sharing facilities.
NHBC
The UK's leading new-home 10-year warranty provider.
Off-plan
Buying a property before it's built.
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