Owners of furnished holiday lets (FHLs) are being urged to act swiftly if considering selling their properties.

This comes in light of recent budget proposals that will scrap Business Asset Disposal Relief (BADR) for FHLs, effective from April 2025.

The termination of BADR will result in owners no longer being eligible for reduced Capital Gains Tax (CGT) at 10 per cent when selling their FHLs.

Instead, the CGT rate will increase to between 18 and 24 per cent, dependent on taxable income.

Lindsay Farrer, managing partner at Cumbrian accountancy firm Saint & Co, is advising owners to make a decision sooner rather than later.

She said: "If selling your furnished holiday let is something that has crossed your mind, it may be worth making this happen before April 5, 2025, to potentially save you a lot of tax.

"Changes to FHL taxes will mean that the typical Capital Gains Tax rate of 10 per cent will no longer apply, and you will be looking at paying somewhere around double, or even higher, than you would before that date.

"We appreciate that selling your let will be a big decision, especially if it brings in a steady income stream, but now would be a good time to act if you have short to mid-term plans to move the property on."

Cumbria has around 9,000 self-catering holiday units, amounting to nearly 41,000 bed spaces, according to Cumbria Tourism.

Ms Farrer also provided advice for those unable to sell their properties before the April 6 changes but hoping to avoid the tax increase.

She explained: "If it isn’t possible to complete the sale prior to April 5, 2025, there is one transitional rule which may help.

"If the business ceases trading before the date, BADR will still be available if you sell the property within three years of the cessation."

Saint & Co is an accountancy firm providing tax and accounting services to thousands of businesses, individuals, charities, and organisations from its multiple offices across Cumbria and Dumfries & Galloway in Scotland.

For further information about FHLs and changes to the CGT rules, contact Saint & Co at 01228 534371.