Can you claim building expenses as an Airbnb if you are building a granny flat for this purpose

[Sarah6318]

We have had our house on Airbnb for the last two years in a popular tourist town and it has been very successful. Which now we would like to move back into our home but are building a granny flat attached to our shed to soon rent out as Airbnb. We are hoping for advice on how we can turn the Airbnb into a business and claim these new build expenses on our taxable income. We have heard of setting up a PLC or a trust. We would hope in the future to buy another property and also put on Airbnb and turn this into a fulltime income. Does anyone have experience with this and what is the best way to go about it?

[Elisa]

Hi @Sarah6318 😊, 

Welcome to the Community Center!

This is a very interesting question. Where did you hear about that?

I’m mentioning a few experienced hosts who will probably know better how to advise you

on this: @Joan2709, @Joelle43, @Guy991, @Frances3408 and @Dave-and-Deb0. 

Thank you in advance everyone!

Warm regards 🌻,

[Dave-and-Deb0]

Hi @Sarah6318,

I know this does not answer your questions but it is certainly best to talk to an accountant or tax expert who understands short-term rentals.   

[Frances3408 · Accepted solution]

@Sarah631. Hi Sarah, you need a good accountant, especially if you are thinking about companies and trusts. Get the advice upfront so you know the pros and cons.

You also may also need a lawyer (trusts and stamp duty), a good mortgage broker or business banker and tools to track your cashflow. None of this comes for free.

Good luck.

[Elisa]

Thank you @Frances3408 and @Dave-and-Deb0 for helping @Sarah6318! 😊

Did you get a chance to talk with an accountant or expert, as our hosts suggested?

Let us know how it goes!
Warm regards 🌻

[Helen3]

I would speak to an accountant who can advise you based on your personal circumstances @Sarah6318 

in the UK you don't need to set up a business structure but can do this on a self employed basis.