Short-term or vacation rentals in the UK are subject to tax implications that property owners should be aware of.
If you rent out your property as a short-term or vacation rental, you will need to declare the income you receive from the rental on your tax return. This income is subject to income tax, and you will need to pay tax on the profits you make after deducting allowable expenses, such as mortgage interest, repairs, and maintenance.
In addition, if you earn more than £1,000 per year from short-term rentals, you will need to register for self-assessment and file a tax return. You may also need to register for VAT if your rental income exceeds £85,000 per year.
It’s important to note that the tax rules for short-term rentals can be complex, and it’s recommended to consult with a qualified accountant or tax professional to ensure that you are meeting all of your tax obligations.
