Free calculator

Holiday let tax calculator UK 2025

Enter your rental income, allowable expenses and mortgage interest. See your estimated tax liability, net income and effective rate under the post-2025 rules. No signup required.

Updated
April 2025 rules
Section 24
Relief included
Free
No account needed
Net income
£26,400
after tax
Tax liability
£5,600
higher rate taxpayer
Example: £40k gross · £8k expenses · £6k mortgage · 40% band
Your estimate
2025 rule change: The Furnished Holiday Lettings (FHL) tax regime was abolished from April 2025. Holiday lets are now taxed as standard property income. This calculator reflects the current rules.
Reflects FHL abolition from April 2025 Section 24 mortgage relief correctly applied UK only - all three income tax bands Estimate only - not tax advice
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i Letting agent fees, insurance, repairs and maintenance, utility bills paid by you, accountancy fees, furniture replacement. Does not include mortgage capital repayments or personal expenses.
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Select your income tax band for the income received from this property.
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Maximise your holiday let income

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Read: Furnished holiday let tax guide →

Three steps to your tax estimate

1
Enter your income and costs

Input your annual gross rental income, allowable expenses (agent fees, insurance, repairs) and annual mortgage interest. Property value is optional, for yield calculation.

2
Select your tax band

Choose basic (20%), higher (40%) or additional (45%) rate. The calculator applies the correct Section 24 mortgage interest relief - a 20% basic rate tax credit regardless of your band.

3
See your net income

Get your taxable profit, gross tax, mortgage relief credit, final tax liability, net income after tax and effective tax rate in one clear breakdown.

What changed for holiday lets in April 2025?

The FHL regime gave short-let properties significant tax advantages over standard buy-to-let. Those advantages were removed from April 2025.

What you lost (pre-April 2025 FHL benefits)
Full mortgage interest deduction (not restricted to 20% credit)
Capital allowances on furniture and equipment
Income counted as earnings for pension contribution purposes
Business asset disposal relief on sale (10% CGT rate)
Business asset rollover relief and gift holdover relief
What still applies (current rules)
Section 24 mortgage interest relief - 20% basic rate credit on all mortgage interest
Allowable expense deductions (agent fees, insurance, repairs, utilities)
Furniture replacement allowance (like-for-like replacements)
Standard CGT rates on disposal (18%/24% for residential)

Holiday let tax: frequently asked

Is this calculator accurate?
It gives a directional estimate based on the figures you enter. It does not account for personal allowances, loss relief carry-forward, multiple properties, or other income sources. Treat it as a planning tool, not a tax return. Always consult a qualified accountant for advice specific to your situation.
What counts as an allowable expense?
Agent and management fees, insurance premiums, repairs and maintenance (not improvements), utility bills paid by you, accountancy and professional fees, furniture replacement (like-for-like). Mortgage capital repayments and personal expenses are not allowable.
How does Section 24 mortgage relief work?
Under Section 24, you cannot deduct mortgage interest from rental income to reduce your tax bill directly. Instead you get a tax credit equal to 20% of your annual mortgage interest, which reduces your final tax liability. Higher and additional rate taxpayers are significantly worse off than under the old rules.
Does the FHL abolition affect Airbnb income?
Yes. Properties that previously qualified as Furnished Holiday Lettings no longer receive preferential tax treatment. They are now taxed the same as long-let residential property. The short-term rental compliance guide covers the full picture.
Can I still make a profit on a short let after the rule change?
Yes, in most cases. Short-let gross income typically exceeds long-let income significantly enough to offset the lost tax advantages. Use the short-let vs long-let calculator to compare net income for your property under both models.
What is the effective tax rate shown in the results?
Your tax liability as a percentage of gross rental income. This lets you quickly see the real tax cost relative to total income, rather than just the marginal rate on profit.
Want to maximise your net income?

Let Houst manage your property

Professional management typically increases occupancy and ADR enough to more than offset the management fee - and we handle compliance too.