Airbnb and short term let tax in the UK: a landlord's guide

Tax is one of the most searched topics by short let owners, and one where the rules have recently changed. This is a plain English overview to help you understand the landscape. It is not financial advice, and you should always speak to a qualified accountant about your own situation.

Short let income is taxable

Income you earn from letting a property on Airbnb or as a short term let is taxable, in the same way as other rental income. You declare it through self assessment, and you can deduct allowable expenses incurred in running the let.

The change to furnished holiday lettings

For years, properties that qualified as furnished holiday lettings enjoyed a special tax regime with some favourable reliefs. That regime was abolished from April 2025. Short term lets are now taxed in a broadly similar way to other rental property, which means some of the old advantages no longer apply. If you relied on the old rules, this is the single most important change to understand with your accountant.

What you can usually deduct

Allowable running costs typically include management fees, cleaning and linen, utilities and council tax where you pay them, insurance, repairs and maintenance, and the cost of consumables. Keeping clear records of income and expenses makes your return far simpler.

Other things to consider

Depending on your circumstances and turnover, VAT can become relevant. Ownership structure, whether you hold the property personally or through a company, also affects how you are taxed. These are exactly the areas where professional advice pays for itself.

The takeaway

Short let income is taxable, the furnished holiday lettings advantages have gone as of April 2025, and good record keeping plus a good accountant will keep you compliant and efficient. Do not rely on general guides for your own numbers.