News

Taxation on rental property

It has been reported by Reuters News Agency that Airbnb UK has agreed to share data with HMRC about the earnings of hosts on its UK platform. They will report historical data for the 2017/18 and 2018/19 tax years, as well as 2019/20 onwards.

For many years, residential letting agencies have reported their clients’ rental income to HMRC and it is safe to assume that holiday letting agents make similar reports. 

It should go without saying that anyone in receipt of rental income should be aware that there will probably be tax consequences.

Rental earnings are income and are generally taxable. Even if it falls under one of the generous tax-free allowances, it should still be reported on your tax return and appropriate claims made for reliefs and expenses.

The addition of Airbnb to the sources of information available to HMRC will surely lead to more letters being sent to non-compliant taxpayers asking them if there is something that they have forgotten to declare. If you or your partner do have previously undeclared rental income, now would be a good time to start getting the information together ready to tell the taxman.

Since 2013, HMRC has been running a Let Property Campaign to encourage taxpayers who have not been declaring rental income to bring their tax affairs up to date with minimal pain and penalties. 

If you do need to put your tax affairs for missed rents, we recommend that corrected 2018/19 and 2019/20 returns are filed if required and consideration is given to using the Let Property Campaign for earlier years.

If you have any queries regarding this, please contact our Tax Department by emailing tax@cmeasy.co.uk


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