Tax for holiday let owners and Airbnb hosts in Brighton & Hove after the 2025 rule change
Short lets are popular in Brighton, and the tax depends on what you let and how. A whole property let to visitors, a spare room in your own home and a serviced let with daily cleaning and breakfast are each treated differently. Getting the category wrong either overpays tax or understates income.
Digital platforms now send host income to HMRC, so the figures on your return need to match what Airbnb and similar sites report. Keep the platform annual statements with your records.
If you let furnished accommodation in your main home, Rent a Room relief allows up to £7,500 a year tax-free. If your gross receipts are under that, you usually do not need to report them. Above it, you choose the better of two methods.
The £7,500 is shared if someone else also receives income from letting in the same home, so a couple with joint ownership each get £3,750.
Holiday accommodation is standard-rated for VAT, unlike a long-term residential let. The registration threshold is £90,000 of taxable turnover in a rolling 12 months, and it counts every let you operate. Where you provide substantial services, such as daily cleaning or meals, HMRC may treat the income as trading income rather than property income, which brings Class 4 National Insurance into play.
The 140-day and 70-day rule for business rates applies in England. Check it against your booking records, because a property that falls on the wrong side pays council tax, and one that qualifies for business rates may be eligible for small business rate relief.
Most hosts report on the property pages of Self Assessment. We separate whole-property lets from Rent a Room income, allocate shared costs, and deal with platform fees and cleaners. If your gross self-employment and property income together exceed £50,000, Making Tax Digital for Income Tax applies from April 2026. Our landlord tax return page has the wider picture.
Sources: GOV.UK: Rent a Room Scheme, GOV.UK: Income Tax rates.
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No. The furnished holiday lettings regime was abolished from 6 April 2025, so holiday lets are taxed like other rental property. Mortgage interest is restricted to a 20% credit, and new spending on furniture no longer qualifies for capital allowances, though replacement of domestic items relief may apply.
Holiday accommodation is standard-rated, so you must register and charge 20% once taxable turnover passes £90,000 in any rolling 12 months. Below that you do not charge VAT. Long-term residential lets are exempt, which is a different treatment.
Yes, but Rent a Room relief lets you receive up to £7,500 a year tax-free for furnished accommodation in your main home. Above that, you pay tax either on receipts over £7,500 or on actual profit, whichever is lower. Platforms now report host income to HMRC.
In England, a property is normally assessed for business rates if it is available to let for at least 140 days a year and actually let for at least 70 days. Otherwise it pays council tax. Check your booking records, because the test looks at real lettings.