HMRC cracking down on Airbnbs

HMRC cracking down on Airbnbs

HM Revenue and Customs probed into nearly 2,000 holiday let landlords in 2023-24, a 20-fold increase on 2021-22.

The figures, obtained by The Telegraph via the Freedom of Information Act, give a strong indication that the HMRC has shifted its focus to make sure those operating holiday rentals are paying their fair share of tax on their rental income.

There were 375 investigations in 2022-2023 previous year, as well as just 95 the year before that.

The environment for landlords operating holiday lets is set to get a lot tougher, due to new rules being brought in by Chancellor Jeremy Hunt.

In April the Capital Gains tax-free allowance was halved from £6,000 to £3,000.

And April next year holiday homeowners will no longer be able to offset their mortgage interest payments from their profits.

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.”