Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified UK tax professional before filing.
Cornwall, UK · United Kingdom · Short-term rental taxes
Short-Term Rental Taxes in Cornwall, UK
Short term rental taxes in Cornwall: holiday-let profit is taxed through HMRC Self Assessment since FHL ended in April 2025, and the 140/70-night test decides business rates or council tax with a 100% second-home premium.
The 30-Second Answer
- Short term rental tax in Cornwall is mostly income tax. Profit from a holiday let goes on your Self Assessment return (SA100 + SA105); income under £1,000 a year is covered by the property allowance.
- The Furnished Holiday Lettings regime ended on 6 April 2025 — Cornish holiday lets are now taxed like any other rental: mortgage interest gets only a basic-rate tax credit, and FHL capital gains reliefs such as Business Asset Disposal Relief are gone.
- Local tax depends on nights: available 140 nights and actually let 70 nights in 12 months = business rates (small business rate relief can cut the bill to nil). Miss the test and it's council tax, and Cornwall Council has charged a 100% second-home premium since 1 April 2025.
- There is no tourist tax in Cornwall. England's short-term let register is planned, not live — the government says it will be fully operational by March 2027.
Deductions
What Cornwall Holiday-Let Owners Can Deduct
HMRC lets you deduct costs incurred wholly and exclusively for the letting business — or take the £1,000 property allowance instead, but not both.
If you or family use the cottage, only costs for the letting periods are allowable. Improvements and the initial furnishing of a let are capital — they are not deductible against rent but can reduce Capital Gains Tax on sale.
Filing Calendar
Key Dates & Filing Calendar
The UK tax year runs 6 April to 5 April. Most Cornwall hosts file one Self Assessment return a year; bigger landlords now also send quarterly updates.
Missing the 31 January online deadline costs an automatic £100 penalty, even if you owe no tax. Interest runs on unpaid tax from the due date.
HMRC — Self Assessment deadlines (gov.uk/self-assessment-tax-returns/deadlines); Making Tax Digital for Income Tax (gov.uk); Changes to tax rates for property income (gov.uk)
Tax Treatment
Actual Expenses or the £1,000 Allowance: Taxing Your Cornwall Holiday Let
With FHL gone, every Cornish holiday let is a normal UK property business. The choice left is how you work out the taxable profit.
Property business — actual expenses
The normal route for a holiday cottage
- Declare rents on SA105 and deduct allowable running costs — cleaning, commission, rates, energy, insurance, repairs.
- Mortgage and loan interest gives a 20% tax credit only (22% from 6 April 2027), no longer a full FHL-style deduction.
- Replace sofas, beds or white goods and claim Replacement of Domestic Items Relief; existing FHL capital-allowance pools can keep receiving writing-down allowances.
- Losses carry forward against future UK property profits.
None — all profit taxed at your marginal rate
Allowances — £1,000 property allowance or Rent a Room
For very small or in-home lettings
- Gross property income of £1,000 or less needs no declaration; above that you may deduct £1,000 instead of expenses.
- Letting furnished rooms in your own home can use Rent a Room: £7,500 tax-free (£3,750 if shared).
- You cannot combine either allowance with actual expenses on the same income.
- Rarely beats actual expenses for a Cornwall holiday cottage with cleaning, energy and rates bills.
£1,000 gross (property allowance); £7,500 (Rent a Room)
Depreciation
Capital Allowances & Replacement Relief for Cornwall Holiday Lets
UK landlords don't depreciate the building. Since FHL ended, new furniture spend is relieved only when you replace an item.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Replacement furniture, beds & white goods | Deducted in the year replaced | Replacement of Domestic Items Relief — cost of a like-for-like replacement, not the first purchase. |
| Existing FHL capital-allowance pool | Writing-down allowances continue | Pools built up before April 2025 can keep being written down; new spend after the abolition follows ordinary property rules. |
| The cottage itself & extensions | No allowance | Buildings and capital improvements aren't deductible against rent; improvements add to CGT base cost. |
| Repairs (re-roofing like-for-like, repainting) | Deducted in the year spent | Revenue repairs are allowable; upgrades beyond like-for-like are capital. |
Keep invoices that show whether spend was a repair, a replacement or an improvement — HMRC treats each differently.
There is no depreciation recapture in the UK. On sale, Capital Gains Tax on residential property is 18% or 24% after the £3,000 annual exempt amount, and the old FHL reliefs (Business Asset Disposal Relief, rollover, gift relief) no longer apply.
Local property tax & lodging tax
Cornwall Holiday-Let Charges: Council Tax, Business Rates, No Tourist Tax
England has no occupancy tax on vacation rental guests. What Cornwall owners pay locally is either council tax or business rates — decided by how many nights you let.
If the property was available to let for 140 nights and actually let for 70 nights in the last 12 months (stays over 28 nights and private use don't count), the Valuation Office Agency lists it for business rates. Otherwise it stays on council tax, where Cornwall's second-home premium can double the bill.
No lodging tax to collect; council tax or business rates apply
VOA — Apply for business rates for a self-catering property in England (gov.uk); Cornwall Council — Second homes; Visitor Levy in England — government response (gov.uk)
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Airbnb, Vrbo or Booking.com booking | No lodging tax collected — there is none in Cornwall | Record the gross booking value and platform fees separately; the platform reports your income to HMRC |
| Direct booking | Nothing to collect unless you're VAT-registered (20% above £90,000) | Keep a nightly letting log — it's your evidence for the 70-night test |
| Property on business rates | You pay Cornwall Council; apply for small business rate relief | Rates are an allowable expense; losing the 140/70 test moves you back to council tax |
The second-home premium does not apply to homes with a planning condition limiting occupancy to 28 days or holiday use. The government plans to let strategic authorities levy a percentage overnight visitor levy; legislation is still to come and Cornwall has set nothing.
Platforms
Airbnb Tax in Cornwall: How Platforms Report to HMRC
The Airbnb tax Cornwall hosts face is income tax, not a guest levy: platforms report your earnings to HMRC, but there is no local tax for them to collect.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Yes — reports host income to HMRC under the digital platform reporting rules | No — no tourist tax in Cornwall | Earnings and transaction history in your account; a copy of reported data |
| Vrbo | Yes — same UK reporting rules | No — nothing to collect | Payout reports in the owner dashboard |
| Booking.com | Yes — same UK reporting rules | No — nothing to collect | Monthly invoices and payout statements in the extranet |
| Direct bookings & letting agents | No platform report — you declare it yourself | N/A | Your own booking log and agency statements |
Listing on More Than One Platform?
Each platform reports only its own payouts. Add Airbnb, Vrbo, Booking.com, agency and direct income together on one SA105 — and keep the combined night count, because business rates depend on your total nights let, not per platform.
UK Digital Platform Reporting (DAC7 Equivalent)
Since 1 January 2024, platforms have had to report sellers' income — including property rentals — to HMRC under the UK's version of the OECD model rules, and must give sellers a copy of what they report. HMRC matches it against your SA105.
HMRC — Reporting rules for digital platforms (gov.uk); The Platform Operators (Due Diligence and Reporting Requirements) Regulations 2023 (SI 2023/817)
Illustrative P&L: Cornwall Cottage, Expenses vs. £1,000 Allowance
A mortgage-free Cornish cottage earning £30,000 a year, on business rates with full small business rate relief. Illustrative only — not tax advice.
Record-Keeping
Stay Audit-Ready: What Cornwall Hosts Should Keep
Two bodies can ask questions: HMRC about your profit, and the Valuation Office Agency about whether you really let 70 nights.
| Keep | How long | Why |
|---|---|---|
| Nightly booking log (dates, guest, price, platform) | At least 5 years after the 31 January deadline | Supports your SA105 and proves the 140-available / 70-let nights for business rates |
| Platform payout statements and reported-data copies | At least 5 years after the 31 January deadline | HMRC cross-checks platform data against your return |
| Receipts and invoices for expenses and replacements | At least 5 years after the 31 January deadline | Substantiates deductions and Replacement of Domestic Items claims |
| Advertising evidence (listing screenshots, availability calendars) | Each rating year, while on business rates | The VOA may ask you to show the property was available to let commercially |
| Purchase, improvement and FHL capital-allowance records | At least 5 years after the return for the year of sale | Needed for Capital Gains Tax and any continuing capital-allowance pool |
If the VOA moves your cottage back to council tax, Cornwall Council's 100% second-home premium can apply once it is back on council tax — keep your letting evidence up to date.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
Checked September 2026. The short-term let register and the overnight visitor levy are government plans, not law — watch gov.uk and Cornwall Council for updates.
- GOV.UK — Abolition of the Furnished Holiday Lettings tax regime — Ends from 6 April 2025 (income tax/CGT); finance costs, capital allowances, CGT reliefs, pensions. gov.uk/government/publications/furnished-holiday-lettings-tax-regime-abolition
- VOA — Apply for business rates for a self-catering property in England — 140 nights available, 70 nights let, stays over 28 nights excluded. gov.uk/guidance/apply-for-business-rates-for-a-self-catering-property-in-england
- Cornwall Council — Second homes — 100% council tax premium from 1 April 2025 and its exceptions. cornwall.gov.uk/council-tax/second-homes
- GOV.UK — Small Business Rate Relief — Full relief at rateable value £12,000 or less, tapering to £15,000. gov.uk/apply-for-business-rate-relief/small-business-rate-relief
- GOV.UK — Visitor Levy in England: government response — Percentage-based overnight levy for strategic authorities; legislation still to come. assets.publishing.service.gov.uk/media/6aa2980c5f6e942efe37f0c9/Visitor_Levy_in_England_-_government_response.pdf
- GOV.UK — Changes to tax rates for property, savings and dividend income — Property rates of 22%, 42%, 47% from April 2027. gov.uk/government/publications/changes-to-tax-rates-for-property-savings-dividend-income
- HMRC — Self Assessment deadlines and Making Tax Digital for Income Tax — gov.uk/self-assessment-tax-returns/deadlines; gov.uk/guidance/use-making-tax-digital-for-income-tax/send-quarterly-updates
- HMRC — Property allowance and Rent a Room — £1,000 property allowance; £7,500 Rent a Room. gov.uk/guidance/tax-free-allowances-on-property-and-trading-income; gov.uk/rent-room-in-your-home
- Propertymark — National short-term lets register promised by March 2027 — Culture Secretary's statement in the Commons, 3 September 2026. propertymark.co.uk/resource/national-short-term-lets-register-promised-by-march-2027.html
Questions
Frequently Asked Questions: Cornwall STR Taxes
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