By using this website, you agree to our use of cookies to enhance your experience.
award award
award award


HMRC launches tax clampdown on Airbnb and short lets landlords

HM Revenue and Customs has opened almost 2,000 investigations into landlords letting out via Airbnb or other short let platforms.

The Daily Telegraph, which submitted a Freedom of Information request to the tax authority, says the 2,000 enquiries opened in 2023-24 are some five fold the number the previous year - 2022-23 - and 20 times the 95 in 2021-22. 

HMRC says it is chasing holiday lets homeowners who are failing to declare income from rent.


An HMRC spokesman told the Telegraph: “The short-term property rental market is growing fast and it’s our role to ensure owners pay the right tax, creating a level playing field for all.

“We have dedicated specific resource to opening enquiries where there is evidence that those renting out holiday lets have not declared income.”

Chancellor Jeremy Hunt’s Budget in March abolished the Furnished Holiday Lettings tax regime which gives extra tax reliefs for costs incurred furnishing holiday lets that aren’t available to private rentals. 

This was done - so the government claims - to remove the incentive for landlords to offer short-term holiday lets rather than longer-term homes. 

This will take effect from April 2025 and Elizabeth Small, a tax partner at law firm Forsters, comments: “Selling your portfolio of furnished holiday lets be prepared for a price chip from the buyer, because from April 2025, if you let properties that would currently now qualify as FHLs, you will no longer be able to claim Capital Gains Tax reliefs for traders, you will not be entitled to plant and machinery capital allowances for items such as furniture, equipment and fixtures and the profits will not count as earnings for pension purposes.

“This means that the buyer is likely to want to pay less for a FHL portfolio as his post tax return will be diminished. But there is some good news for the sellers of holiday homes - as well as other additional property - because the higher rate of capital gains tax on residential property gains falls from 28 to 24 per cent. The lower rate will remain at 18 per cent, but remember the CGT annual allowance is also reducing.

“Whether these changes are sufficient to encourage FHL owners to exit the short term letting sector and either sell to home owners or to move to long term letting is yet to be seen, but it could end up with owners simply not bothering to rent out and using the property for a couple of weeks a year, meaning pubs, restaurants and shops in holiday hotspots having fewer visitors.”

Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.


Join the conversation

  • George Dawes

    I was considering using airbnb for one of my properties until i read reviews on trustpilot

    Oh deary me …

    Shocking to say the least…. Id rather burn it to the ground which would probably happen anyway by looking at some of the experiences on there …


    Ive used Airbnb for a few years now George and have found it to be a really good platform for my holiday let properties. No problems with payments either. I'd recommend then to anyone considering going down this path.

  • icon

    There’s also L Lords got prop overseas and not declaring the rent. Even though the money don’t touch the Uk banks. So they need to watch it. ( double taxation ).

  • icon

    I wrote to HMRC in January. Still not received a reply. They need to put their own house in order!

  • icon

    Actually I have no problem with people paying the tax they owe, like I do!! Might be annoying but it does fund the NHS and other public services. If nobody pays any tax then no public services!


    I have a problem with those that don't pay and that are allowed to get away with it

  • icon

    i have a problem with those people who come to the country illegally, have no intention to integrate, claim everything they can from the state whilst contributing nothing except trouble. Things are so bad in my once nice wandsworth locality that i dare not go out after dark.


    That's true of many other parts of the country as well, Dereham, a small market town in mid Norfolk, unsafe for the ladies even in day light for the same reasons


Please login to comment

MovePal MovePal MovePal
sign up