Airbnb & Short-term Let Host

Understand the tax rules for holiday let income and short-term property rental.

Allowable Expenses

• Mortgage Interest (proportion) — Interest on the mortgage for the let property — claim the proportion of time the property is let.
• Repairs & Maintenance — Repairs, painting, and maintenance that restore the property to its original condition — not improvements.
• Cleaning & Laundry — Professional cleaning between guests, laundry costs, and cleaning supplies.
• Insurance — Short-term let (Airbnb host) insurance — standard home insurance typically does not cover commercial rental activity.
• Platform Fees — Airbnb service fees deducted from your payouts are a deductible cost of doing business.
• Furnishings & Replacements — Replacement of furniture and appliances on a like-for-like basis — use the Replacement of Domestic Items Relief.

Tax Tips

• Furnished Holiday Lettings (FHL) rules may apply if the property is let commercially for at least 105 days — FHL status gives access to more generous tax reliefs.
• The Rent-a-Room scheme offers up to £7,500 tax-free if you let a furnished room in your own home — Airbnb income can qualify.
• Capital improvements (loft conversion, new kitchen) are not immediately deductible — they become a deduction when you sell the property.
• If you use the property personally, expenses must be apportioned between private and let periods — only the let proportion is deductible.

Frequently Asked Questions

What is the Rent-a-Room scheme?

The Rent-a-Room scheme allows you to earn up to £7,500 per year tax-free from letting a furnished room in your own home. Airbnb income for a room in your main residence can qualify. Above this threshold, you pay tax on the excess or switch to the normal property income rules — whichever gives the better result.

Does HMRC receive data from Airbnb?

Yes. Airbnb and other short-term rental platforms are required to report UK host income to HMRC under digital platform reporting rules. Do not assume undeclared income will go unnoticed.

What is a Furnished Holiday Let and why does it matter?

A Furnished Holiday Letting (FHL) qualifies for more generous tax reliefs (capital allowances on furniture, capital gains reliefs) if the property is available for at least 210 days and let for at least 105 days per year on a commercial basis. Post-April 2025, FHL rules were abolished — take advice on how this affects your position.

Can I deduct the Airbnb platform fee from my income?

Yes. The Airbnb host service fee (typically 3% of the booking subtotal) deducted from your payouts is a fully deductible cost of using the platform. You can either declare gross income and deduct the fee, or simply declare the net amount you receive.