Answers · UK 2025/26
Is Airbnb and holiday rental income taxable in the UK?
Yes. Airbnb and short-term rental income is taxable. If you rent a room in your own home you may qualify for the Rent a Room Scheme (up to £7,500 tax-free per year).
Full answer
Income from letting property on Airbnb or similar platforms is subject to UK income tax. If you rent out a furnished room in your main home, the Rent a Room Scheme allows the first £7,500 of gross income (£3,750 each for two joint owners) to be received tax-free with no need to declare it on a tax return. Income above £7,500 is taxable and must be reported via Self Assessment. For entire property lets (where you do not live there), Furnished Holiday Lettings (FHL) rules may apply if occupancy conditions are met, giving access to capital allowances and pension contribution benefits. From April 2025, however, the FHL regime was abolished and holiday lets are now taxed the same as other property income. If your total rental income from all sources exceeds £1,000 per year, Self Assessment registration is required.
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.