What your holiday let really makes
Since April 2025, holiday lets are taxed like any other let. See what yours makes after every cost and the tax, a year and a night.
Your answer
Enter the nights it's let and what you charge to see what your holiday let makes.
About this calculator
For anyone who owns a holiday let in their own name in England, Wales or Northern Ireland and wants the real figure after every cost and the tax.
The special tax rules for furnished holiday lets ended on 6 April 2025. Mortgage interest now only gets basic rate relief, there are no capital allowances on new furniture or fittings, the profit no longer counts as earnings for pension tax relief, and Business Asset Disposal Relief no longer applies when you sell.
What happens to your answers
We don’t keep them. Your answers go to our server to do the sums and aren’t stored or logged. If you copy a link to your answers, they’re in the link itself, so only share it with people you trust.
How it’s worked out
We take your bookings income, less platform or agent fees, cleaning and running costs. That's the profit that's taxed: mortgage interest isn't taken off it. We work out the income tax on it on top of your other income, then take off a credit of 20% of the mortgage interest (limited to the profit, and to your income above the tax-free allowance; any interest left over carries forward).
What it makes after tax is the profit less the mortgage interest and the tax. We split it by the nights let and, if you give the property's value, show it as a yield. We also show next year's figure: from 6 April 2027, property income is taxed at 22%, 42% and 47%, and the mortgage interest credit rises to 22%.
Worked example
Your holiday let makes about £4,724 a year after mortgage interest and tax: £31.49 a night.
2026/27 tax year · England, Wales and Northern Ireland rates · other income £40,000 · one owner
| Bookings income (150 nights at £180.00) | £27,000 |
|---|---|
| Platform or agent fees (15%) | − £4,050 |
| Cleaning and changeovers | − £4,500 |
| Other running costs | − £6,000 |
| Profit that's taxed (mortgage interest isn't taken off it) | £12,450 |
| Mortgage interest | − £6,000 |
| What it makes before tax | £6,450 |
| Tax on the profit, on top of your other income of £40,000 | £2,926 |
| Less mortgage interest relief: 20% of £6,000 | − £1,200 |
| Income tax on the let | − £1,726 |
| What it makes after tax | £4,724 |
| After tax, a night (over 150 nights let) | £31.49 |
| After tax, as a share of the property's value (£350,000) | 1.3% |
| From 6 April 2027: tax at 22%, 42% and 47%, less 22% relief on mortgage interest | £1,855 |
| What it makes after tax from 6 April 2027 | £4,595 |
Worked out using HMRC's published rates for the 2026/27 tax year (6 April 2026 to 5 April 2027) and the property rates announced for 6 April 2027.
Questions people ask
What changed for holiday lets in April 2025?
The furnished holiday lettings rules were abolished from 6 April 2025 (1 April 2025 for companies). Holiday lets are now taxed like other lets: mortgage interest gets only basic rate relief, new spending on furniture and fittings gets replacement relief instead of capital allowances (an existing capital allowance pool keeps going), the profit doesn't count for pension relief, and the selling reliefs for businesses no longer apply.
Does my holiday let pay business rates or Council Tax?
In England, it pays business rates if it was available to let for 140 nights and actually let for 70 nights in the last 12 months, and you plan to offer it for 140 nights in the next 12. Otherwise it pays Council Tax. In Wales the figures are 252 nights available and 182 let. The 2025 tax changes didn't change this.
Does this work in Scotland?
Not exactly. Scotland has its own income tax rates and bands, so the tax on the profit would be different. Talk to us for a Scottish figure.
More free calculators
Talk to us about your tax.
A free call with the team. We’ll contact you within 24 hours.