Answers · UK 2025/26
Do I pay tax on Airbnb income in the UK?
Yes. Airbnb counts as rental income or furnished holiday lettings (FHL — regime ending April 2025). Tax applies unless covered by the £1,000 Property Allowance or £7,500 Rent a Room scheme (renting a room in your main home).
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UK Airbnb taxation 2025/26. Three scenarios. (1) Renting a room in your main home (lodger-style): Rent a Room scheme — up to £7,500/year tax-free (£3,750 if jointly let). No Self Assessment needed below this. Above £7,500, choose to pay tax on the excess OR deduct actual expenses. (2) Renting a whole property occasionally: standard rental income. £1,000 Property Allowance covers small amounts; above £1,000 must declare via Self Assessment SA105. Allowable expenses: cleaning, replacement furniture (no longer 10% wear & tear since 2016 — actual replacement only), platform fees (Airbnb takes 15%), council tax/utilities apportioned, advertising. Mortgage interest: 20% basic-rate credit only (Section 24). (3) Furnished Holiday Lettings (FHL) regime: ends April 2025 — was a favourable regime allowing full mortgage interest deduction, full CGT reliefs, pension contribution counting profits as relevant earnings. From April 2025, FHL property treated as standard residential rental — major tax impact for serious Airbnb operators. VAT: register if turnover exceeds £90,000 (most Airbnbs don't reach this). Airbnb shares host data with HMRC since 2024 under platform reporting rules — declare to avoid penalty letters. Plan-ahead: discuss with accountant if you have multiple properties or substantial income.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.