What expenses can Airbnb owners claim for tax purposes? How is income taxed? Can you claim Rent-a-Room Relief? How does it affect Private Residence Relief? What are the VAT rules? 

Our checklist for subscribers.

At a glance

This guide takes a look at how homeowners who let all or part of their UK property as an Airbnb are taxed. It does not deal with overseas properties and specialist and local advice should be taken where the let property is located abroad.

  • In some cases where the activity does not in itself amount to a trade (i.e. it is a property business), the conditions for Furnished Holiday Letting (FHL) treatment may be met. See Overview tab.
  • Income from Airbnb is generally rental income.
  • The trade must be run on a commercial basis for Loss Relief to apply.
  • The provision of holiday accommodation is standard-rated for VAT purposes.
  • Whether or not an Airbnb business is eligible for Inheritance Tax Business Property relief depends on the level of services provided and all factors considered in the round. See Overview tab.