Tax returns for property investors and Airbnb hosts.
Landlords, buy-to-let investors and short-term let hosts. The furnished holiday let rules were abolished from 6 April 2025, so short-term lets are now generally taxed like other rental income.
What to know
The furnished holiday let rules were abolished from 6 April 2025, so short-term lets are now generally taxed like other rental income.
We report your rental income, claim allowable costs and apply mortgage interest relief correctly. If you let a room in your own home, rent-a-room relief may remove the tax altogether.
Costs you can usually claim
- Letting agent fees
- Repairs and maintenance
- Insurance, service charges and ground rent
- Utility bills you pay for the property
- Accountancy fees
- Mortgage interest, given as a 20% tax credit
Authorised and regulated
Is Cheap Tax Returns authorised and regulated? Yes.
Your return is prepared by qualified UK accountants holding qualifications from the leading accountancy bodies: ICAEW, ACCA and AAT. We are also on the ICAEW approved employers list, so you can file with confidence.
Regulated by the professional bodies. Reviewed by qualified accountants. Part of Accotax.
Prepared by accountants you can trust.
In depth
Tax returns for property investors and Airbnb hosts: what to know
Short lets, buy-to-let and holiday rentals have changed in recent years. These are the rules that matter now.
How is Airbnb and short-let income taxed?
Income from letting a property on Airbnb or similar platforms is taxable rental or trading income. You report it on the UK property pages of your Self Assessment return, after deducting allowable costs. If you let a room in your own home, Rent a Room relief of £7,500 may make it tax-free.
What happened to furnished holiday lets?
The furnished holiday lettings tax regime was abolished from 6 April 2025. Holiday lets are now taxed like other rental property, with different treatment of finance costs, capital allowances and Capital Gains Tax reliefs. Review any plans that relied on the old rules.
Which costs can property investors claim?
Letting agent fees, platform fees, cleaning and laundry, repairs, insurance, utilities and service charges you pay, and replacement furniture. Mortgage interest is not deducted directly. It is relieved through a 20% tax reduction instead.
What about Capital Gains Tax when I sell?
Gains on residential property above the £3,000 annual exempt amount are taxed at 18% or 24%. You must report and pay within 60 days of completion. Keep records of purchase costs, improvements and sale costs.
Why use Cheap Tax Returns for property investors and hosts?
Cheap Tax Returns is part of Accotax, a UK accountancy practice. Our fees are fixed and quoted in writing before we start, the return is prepared by an accountant and checked before filing, and we work online with clients anywhere in the UK. Our team holds ICAEW, ACCA and AAT credentials. For a free quote call 0203 4411 258 or email [email protected].
At a glance
Property investors and hosts at a glance
Key dates
- 31 January: online return and tax payment
- 60 days: report and pay CGT on a UK property sale
- 31 July: second payment on account
- 5 October: register if new to letting
Key figures
- Property allowance: £1,000
- Rent a Room relief: £7,500
- Finance cost tax reduction: 20%
- CGT annual exempt amount: £3,000
Common mistakes
- Deducting full mortgage interest
- Claiming improvements as repairs
- Missing the 60-day CGT report
- Using old holiday let rules
Questions, answered.
It can be, if you let furnished space in your own home. Income up to £7,500 can be tax free.
Yes. Each owner reports their share of the income and costs on their own return.
It depends on your rental profit, mortgage and exit plans. Personal ownership is simpler, while a company can help with finance costs but adds accounts and extraction tax. We compare the numbers.
If gross property income is over £1,000 you need to tell HMRC unless Rent a Room relief covers it.
Yes. Spouses and joint owners each report their own share, and we check that the split is correct.
Next steps
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Know your price before we start.
- Fixed fee confirmed in writing before any work begins
- ICAEW, ACCA and AAT-qualified accountants
- Filed with HMRC and confirmed, so you have proof
- A real person on the phone: 0203 4411 258