Air b and b in Ltd company

[Fraser60]

Hi everyone. I am just about to go live with my first air b and b listing. My original thought was to set up a limited company however after speaking to an accountant, she says air b and b is no longer considered a business and therefore cannot be structured within a limited company. Can anyone please confirm if this is the case or are people doing this. I live in the UK. Many thanks. Fraser

[Mike-And-Jane0 · Accepted solution]

@Fraser60 I'm going to suggest a new accountant. Certainly the Furnished Holiday Let benefits have gone but a business can still run short term rentals. The problem you may have though (and what your accountant may mean) is that the company will have to own the listing which will cost you in stamp duty/capital gains tax and would probably be overly complex to achieve if you have a mortgage.

[Elisa]

Hi @Fraser60 😊, 

Thank you for asking this question here!

What do you think of our host’s suggestion?
Do you still need more help with this?

Don’t hesitate to let me know.

Warm regards 🌻,

[Helen3]

Why do you want to set up a limited company to operate your STR business?  @Fraser60 

Unless you're a property management company most Uk hosts operates as self employed . 

[Fraser60]

Hi Helen. I am just exploring all options. I Scotland I pay 45% income tax so any earnings will be at that rate. Would it be possible to put my partner down as the main income recipient as she earns under 12.5k and then as a couple we would benefit more? Thanks

[Mike-And-Jane0]

@Fraser60 Under the FHL regime you could direct income to whomever you liked. With its demise I believe the income has to be split in proportion to the ownership of the property. So if your partner owns half then she can get half the income.

Have a quick look at gov.uk for rental income to learn more. I am slightly out of date as we sold our property last yer and are still looking for a new place to live.

By the way to reply to people you need to tag them by clicking @ and then choosing @Helen3 for example.