Thursday 30th April 2026
April 2026 brings to an end the first tax year without the tax benefits for short-term lets.
With many short-term let owners feeling anxious and overwhelmed by the number of recent tax changes, Zeal have put together an essential checklist that owners can follow to ensure they understand their new tax responsibilities, maximise their tax efficiency remain 100% compliant and take advantage of all tax benefits available to them, before it’s too late.
As a leading short-term let tax specialist in the UK (not accountants), Zeal understands the tax pressures facing the industry and are helping owners navigate the ever-changing tax landscape, pay only the right amount of tax, and unlock thousands of pounds in tax savings on the purchase, refurbishment or construction of their short term let property, through capital allowances.
✅ Don’t miss the Capital Allowances deadline.
If you started your short-term let before 6th April 2025 (1st April for Limited companies), you could be eligible to claim an ‘extra’ level of tax relief on the costs you spent to purchase, build or refurbish your property.
As a specialist type of capital allowances, this cannot typically be claimed by an accountant. Unlocking this unclaimed tax relief can generate thousands of pounds in cash refunds and future tax savings BUT, the deadline to secure the available tax benefit is 31 January 2027.
Zeal offer a free, no-obligation capital allowances review and tax savings estimate. Arrange yours for a time and date that suits you here.
✅ Understand how the new tax landscape affects you.
With the abolition of the Furnished Holiday Let tax regime from April 2025, the short-term let sector has faced the biggest tax shake-up in over 40 years. As an owner, it’s imperative that you understand these changes, how they may apply to you and what you can do to minimise the impact on your business.
Zeal has written a detailed eBook to provide owners with a full understanding of everything they need to know and actions they can consider. For more information about this eBook, contact our team on [email protected].
✅ Prepare for Making Tax Digital
From April 2026, if your rental income is above £50,000, you will need to submit your income and expenses digitally to HMRC, every 3 months. July 2026 will be the first quarter filing date. Even if you’re not mandated yet, MTD is coming for everyone and preparing early will make the transition smoother. You will need to do MTD from 2027 if your income is over £30,000, and from 2028 if it is over £20,000.
An all-inclusive MTD guide including a review of several MTD compliant software is available to download here.
✅ Review if your short-term let business is structured tax efficiently
If you own a short-term let in your personal name, you may be wondering if transferring ownership to a Limited company (called incorporating) would be more tax advantageous. Many factors come into play when determining the best structure for your situation. If you are considering incorporation, make sure you take professional advice.
You can find more information about owning a short-term let in a Limited company and other business structures in Zeal’s Guide here.
✅ Claim all your tax-deductible expenses
Now that the Furnished Holiday Let tax legislation has been abolished, there are new rules around what expenses can and can’t be deducted to reduce taxable profit. Make sure you take advantage of everything you are able to claim!
Help-sheets on tax-deductible expenses are available here.
Additional words of wisdom from Matt Jeffery
FHL Tax Specialist & Zeal Managing Director
- Do your 2025/2026 tax return ASAP.
As this will be the first tax return you file under the new rules, completing it as early as possible will ensure you give yourself time to seek advice where you need it. Your tax liability may also be higher following the implementation of the changes so finding out what tax you will owe in January 2027 sooner rather than later can avoid any last minute, unexpected surprises.
- Be aware of new ratings for Business Rates (and the back-log to switch to Business Rates).
With the implementation of the new ratings list from April 2026, this could mean potentially higher rateable values for some owners. Whilst it is anticipated that the changes will not impact most owners, be prepared to challenge the new ratings for your FHL.
- Make use of Zeal’s Free Resource Hub.
From tax articles, help sheets and videos, to guides and eBooks, you can find information on a wide variety of tax topics, all at your fingertips. Zeal add a new resource every month on a relevant tax subject.
Disclaimer by Zeal
This article was written by Matt Jeffery of Zeal Tax, a leading capital allowances specialist firm in the UK, as an educational piece to help furnished holiday let owners understand their tax responsibility.
The information provided in this article is of a general nature. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific advice from a professional before you take any action or refrain from action. Whilst we endeavour to use reasonable efforts to furnish accurate, complete, reliable, error free and up-to-date information, we do not warrant that it is such. We and our associates disclaim all warranties.
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