Airbnb self assessment and transfer deed

Hi HMRC, For Airbnb rental income. 1) Can I take into account all expenses on property including mortgage payments as expense 2) Airbnb income received into my account is that all I need to declare, as Airbnb sends income after deducting all fees. 3) when I do self assessment can I include my wife's details also in it. So both our income is considered for taxes and split will be by default 50 -50. Or can I split the percentage by deed of trust?

Hi,

1. You can only claim tax relief on any interest paid. This is under residential property finance costs.
2. You need to declare the income, including Airbnb, as your gross profit and claim the Airbnb fees as expenses.
3. Your wife will need to declare her 50 percent share on her own tax return, just as you have to declare your 50 percent on your tax return.  

If you have a deed of trust is in place, you will need to complete form 17 to declare the beneificial interest in joint property income. You can see guidance here:

Declare beneficial interests in joint property and income

You have 60 days from the date the form 17 is signed to submit it to HMRC. If it is recieved after 60 days, it will be rejected. You can only use the deed of trust split if it is agreed by HMRC, until then it is 50:50 only.

Thank you.

1) There isn't enough options for claiming against various categories. 2) mortgage interest for Holiday let can be claimed for whole annual amount, different to if you are renting? 3) If the expenses come from one account in my name. Can I wife claim 50% of expenses on the self assessment, as the income is split between two.

Hi S0787571,
Mortgage interest can still be claimed in full for furnished holiday lets.
The 50/50 rule does not apply to furnished holiday lettings as this is earned income.
Please refer to TSEM9820 - Property held jointly by married couples or civil partners: The 50/50 rule:
PIM4105 - Furnished holiday lettings: overview
Please note you should use the “other allowable property expenses” box for items which you are unable to categorise into the boxes available.
Thank you.