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Holiday Accommodation: Tax Allowances

Question for Treasury

UIN 62797, tabled on 25 October 2021

To ask the Chancellor of the Exchequer, whether he plans to take steps to remove the holiday let tax exemption that allows landlords to lower their mortgage interest payments by using properties for holiday lets rather than longer-term tenancies.

Answered on

2 November 2021

Tax relief on mortgage interest is available for landlords renting properties both as longer-term tenancies and as furnished holiday lets. Tax relief on mortgage interest on properties rented as longer-term tenancies is available at the basic rate of income tax; we estimate that only 1 in 10 landlords are affected by this restriction introduced in 2017 and phased in over four years. The Government keeps all taxes under review.

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