From April 2025, holiday lets lose their special tax treatment. Landlords must prepare for new Income, Capital Gains, and Corporation Tax rules. Here's what’s changing.

The repeal of the Furnished Holiday Lets (FHL) regime, a long-standing arrangement that offered tax advantages for individuals and companies letting out properties on a short-term basis, has now come into force. The removal of these benefits will affect both Income Tax and Capital Gains Tax from 6 April 2025, and Corporation Tax (including chargeable gains) from 1 April 2025.

These changes mean that properties previously classified as FHLs will now be treated as part of the individual's overall UK or overseas property business and will be subject to the same rules as non-FHL property businesses.

Under the previous regime, qualifying FHLs benefited from several tax reliefs that were not available to standard buy-to-let properties. These included the ability to claim capital allowances on furniture and fixtures and Business Asset Disposal Relief. With the repeal, these advantages will no longer apply.

Another important aspect of the reform is the removal of the FHL-specific exemption from the jointly held property rules. Under the new rules, income and gains from jointly owned holiday lets will by default be split equally between spouses or civil partners, unless:

• entitlement to the income and the property are in unequal shares; and

• spouses or civil partners have informed HMRC that their share of profits and losses is to match the share each holds in the property. This can be done using Form 17: Declare beneficial interests in joint property and income.

Tax thresholds frozen till 2028? That’s fiscal drag in action – more tax paid without rate rises. It’s a stealthy revenue boost for HM Treasury, projected to bring in £38bn a year by 2029. Inflation and pay rises make it worse.

The freezing of tax thresholds often results in a phenomenon known as fiscal drag. When tax thresholds remain static, taxpayers find themselves paying more tax as their earnings increase, without receiving a corresponding rise in tax allowances. Consequently, more individuals are "dragged" into higher tax brackets or start paying tax for the first time, essentially functioning as a hidden or stealth tax. In the UK, several tax thresholds—particularly for Income Tax—have been frozen since April 2022 and are set to remain unchanged until April 2028.

While fiscal drag is not an unusual occurrence, its impact is influenced by three critical factors: the government's setting of thresholds and allowances, inflation, and wage growth. How these thresholds are determined is especially significant during periods of high inflation.

Adjusting tax thresholds to align with inflation or another index is referred to as "indexation." The government’s approach of increasing certain thresholds each year based on inflation is called "uprating." However, this policy is not consistently applied. When thresholds are frozen, tax revenues increase for HM Treasury without the need for any adjustments in tax rates. According to the latest estimate from the Office for Budget Responsibility (OBR), the freeze on Income Tax thresholds is projected to generate an additional £38 billion annually by 2029-30.

HMRC has announced that interest rates for late payments will increase by 1.5% for all taxes starting 6 April 2025. This change, which was first announced at Autumn Budget 2024, will raise the late payment interest from the current base rate plus 2.5% to base rate plus 4.00%. This adjustment applies to most taxes. Late payment interest is automatically applied by HMRC and accrues on any unpaid tax liability from the due date until the amount is fully paid.

HMRC interest rates are determined by legislation and are tied to the Bank of England’s base rate. While the rate for late payments is set to increase, the rate for repayment interest will remain unchanged. Currently, repayment interest is set at base rate minus 1%, with a minimum floor of 0.5%.

The purpose of the late payment interest rate increase is to encourage timely tax payments, ensuring fairness for those who pay on time. HMRC also says that this increase aligns its practices with those of other tax authorities globally, as well as with commercial norms for loan and overdraft interest rates. The repayment interest rate compensates taxpayers fairly for any overpayments.

If you're facing financial difficulties and owe tax, HMRC’s Time to Pay service may offer breathing space. From self-assessment to PAYE and VAT, eligible individuals and businesses can spread payments and avoid immediate enforcement.

Businesses and self-employed individuals experiencing financial challenges and with outstanding tax liabilities may qualify for support through HMRC's Time to Pay service. This service helps with unpaid taxes, duties, penalties, or surcharges that cannot currently be paid.

Self-assessment taxpayers with liabilities of up to £30,000 can use the online Time to Pay service to arrange instalment payments for their tax bills. This service is available without needing to speak directly to an HMRC advisor and can be accessed within 60 days of the payment deadline.

To be eligible for the online service, taxpayers must meet the following conditions:

• No outstanding tax returns
• No other unpaid tax debts
• No existing HMRC payment plans

The self-serve option is also available for qualifying PAYE and VAT debts up to £100,000. For taxpayers who don’t qualify for the online option, alternative payment plans can be arranged, typically tailored to the individual’s or business's specific situation and liabilities. These plans allow for debt repayment in instalments over an agreed period.

HMRC generally provides extended payment terms if they believe the taxpayer cannot pay in full immediately but will be able to do so in the future. If HMRC determines that additional time won’t resolve the issue, they may require immediate payment and begin enforcement actions if the debt remains unpaid.

Student Loans help cover the cost of university or college in the UK. Whether you're full-time, part-time, or heading into postgrad study, here’s what you need to know about applying for 2025–26 funding—even if your plans aren’t final yet.

Student Loans are an essential part of the government’s financial support system for individuals pursuing higher education in the UK. These loans are designed to assist students in covering their living and educational costs during their time at university or college.

If you usually reside in England, you can apply for student finance for the academic year 2025-26. You can submit your application for student finance even if you are unsure about your living or studying arrangements. Applications for postgraduate students will be open at the end of April, while part-time applications will be available starting in May.

You can apply for several types of funding, including Tuition Fee Loans and Maintenance Loans. Applications can be made up to nine months after the start of your course’s academic year. If you are eligible for tuition fee-only funding, you will need to submit your application by post. However, for most applicants, the best way to apply is online through the Student Finance England website.

For those requiring financial assistance for further education courses at a college or training provider, it may be possible to apply for an Advanced Learner Loan instead.

The application procedures differ for students who are from Scotland, Wales, and Northern Ireland, and they should be aware of the specific requirements they need to meet.