Lodge Compliance - Your Guide to Stress-Free Short-Term Rentals in United Kingdom

What are short Term Rentals in the Country?

The definition of short-term rentals depends on the city in which the property is located in the United Kingdom, as short-term definitions and regulations vary from city to city. Short-term rental generally is the renting out of a furnished apartment, or an entire house, temporarily, usually for a few weeks or months, to tourists as an alternative to hotels.

For homes that are wholly rented out, the term "villas" is sometimes used, but STRs are often referred to as "vacation rentals"

People who temporarily rent out a location other than their own abode are known as tourists or guests.

People who rent out their furnished apartments temporarily are known as hosts.

What is the maximum length of stay?

There is no standard maximum length of stay in the UK, as the maximum number of days of rentals varies from city to city and accommodation to accommodation. But short-term rental is usually for about **30 days. **However, some cities, such as Greater London, allow a more extended stay of up to **90 days a year **for hosts who rent out their entire house without certificates and an unlimited maximum length of stay for hosts with certificates and those who rent out their primary residence.

Are there National Rules or Regulations Governing Short-Term Rentals in the Country?

There is no national rule regarding short-term rental in the United Kingdom. City-wide and region-wide laws, such as registration and safety requirements, govern the rental of residential units. These laws may vary for residents and those living out of the country who own property in the city and rent their spare rooms or other types of lodging to visitors.

Some cities also regulate short-term rentals in areas such as building and housing standards, zoning, insurance requirements, Health and Safety standards, occupancy limits, noise restrictions, etc.

Is there any National Tax that affects short-term rental?

As a general rule, the income you receive as a vacation rental host is classed as taxable. although tax obligations differ from person to person. Basically, you are required to pay three significant taxes;

Value Added Tax (VAT): a tax added to most products and services sold by VAT-registered businesses. You are required to register for VAT if your taxable turnover exceeds £85,000. Check the HMRC website for further information on the current amount of VAT to pay, registration procedures, and when to file your returns.
Income/Business Tax: This is the tax paid on earnings from employment, profits from self-employment, the money from renting out a property, and returns from savings and investment above specific allowances. Your income tax may be either a rental or a business tax, depending on the classification of your accommodation.
You are required to pay business tax property is classified as a self-catering property. These properties are available for rental more than 140 days a year, while income tax is paid if the property is available for less than 140 days. The rates vary depending on the location, size, and type of the property, as well as the number of guests it can accommodate.
HM Revenue and Customs (HRMC) requires tax forms to be submitted by the end of January.
Council Tax: This tax is paid to the local authority for the maintenance of the city. In greater London, hosts are liable to pay council tax for the nights they rent their homes. This includes people who have a discount on their council tax or are exempt from council tax. Check the rules surrounding the declaration of earnings online in your local jurisdiction or subscribe to the premium package of lodge compliance to know the rules that apply to your specific property.
NOTE: There are some deductible allowances for some taxes. Ensure you check to know if you can make any deduction from your taxes. For instance, you can be exempted from paying taxes if you earn up to £7,500 a year for renting your primary residence, provided you are not sharing this income with someone else. If you are, the threshold is reduced by half.

Are there any Permits, Licenses, or Registrations for Short-term Rentals in the Country?

There is no national permit, license, or registration for short-term rental owners in the United Kingdom, instead, you may be required to apply for tax permits at multiple levels of government and register for other licenses such as fire, planning, zoning permits, etc., at your local jurisdiction to carry out short term rental on your property.

Greater London requires that you possess a planning permit and submit the 90 days Limit Exemption Form before you can host an entire property beyond 90 days.

Edinburgh City also requires that property owners obtain a planning permit to change their residential dwellings to short-term rentals.

Northern Ireland requires hosts to obtain an official tourism certificate before carrying out vacation rentals on their property, irrespective of the length of stay.

It is essential to check with both regional and local authorities for the necessary registrations. Check your sub-national jurisdiction page on this website to access the latest information on the laws and regulations that applies to your short-term rental properties in the Kingdom.

United Kingdom Lodging Regulations

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