As most clients will be aware, the Furnished Holiday Lettings regime was abolished on 5 April 2025.
One issue in this regard needs to be addressed urgently – if the property is owned jointly by a married couple it has been possible to date to split the net profit in any way you see fit.
However, since 6 April if the property is owned as joint tenants this income has to be declared 50/50.
The only way to displace this is to change the ownership legally to whichever apportionment you need but you also have to send a Form 17 notification to HMRC within 60 days. The change of ownership will need to be made via a solicitor, normally by a change from joint tenancy to tenants in common, and with a declaration as to ownership shares.
So in order for the split you prefer to continue, this needs to be addressed and HMRC informed by the end of May.
If you think this may be relevant to you, please contact our tax department so we can advise further.