HMRC open investigations and launch tax clampdown on Airbnb and short lets landlords
Updated: May 24, 2024
Almost 2,000 investigations have been opened by HM Revenue and Customs into landlords who are letting out via Airbnb and other short let platforms.
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.”
According to a freedom of information request to the tax authority, which was submitted by The Daily Telegraph, the 2,000 enquires opened in 2023-24 are five times the number in the previous year and 20 times the 95 in 2021-22.
Chancellor Jeremy Hunt’s Budget in March abolished the Furnished Holiday Lettings tax regime.
The regime gives extra tax reliefs for costs incurred furnishing holiday lets that aren’t available to private rentals.
The Government claim that this was done to remove the incentive for landlords to offer short-term holiday lets rather than longer-term homes.
This will take effect from April 2025.
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