Furnished Holiday Let owners are facing significant changes in April 2025. Among the most impactful? New rules around pension contributions. Starting next tax year, income from FHLs will no longer count as relevant earnings for tax-relievable pension contributions. Here’s everything you need to know to make the most of this benefit while it’s still available.
What This Means for FHL Owners
Under current rules, income from FHLs can be considered “relevant earnings” for the purpose of pension contributions, enabling owners to offset contributions against profits for tax relief. This offers a valuable way to save for retirement while reducing your taxable income. However, once the new rules come into effect, this benefit will disappear for FHL income.
Maximizing Your Pension Contributions
If you’re looking to maximise your retirement savings with tax-relievable contributions, now is the time to act. By making contributions before April 2025, you can take full advantage of this benefit. Consulting with a tax expert ensures you’re contributing strategically and maximising relief while it’s still an option.
How Adam Can Help
Adam Meldrum, our pension and tax expert, can assess your FHL income and guide you on optimal contributions to secure your retirement savings before the window closes. Don’t leave your financial future to chance—schedule your consultation today!
