We have been air bnb'ing the basement flat of our home since June last year. It's attached to the main house (stairway descending) all bills are paid as one house. I'm currently looking for an accountant as the regs seem suite complex but can anyone advise the following?
What kind of property this would be classed as tax wise?
Is furniture/decoration fully redeemable against tax?
@Holly276 If you can access the space from inside your house you can probably get away with it being covered under the rent a room scheme whereby £7500 of income is tax free.
If access is from outside the you need to see if it qualifies as a Furnished Holiday Let. Basically it needs to be available for rent for 210 nights, actually rented for 105 days and no stay that counts to the 105 can be in excess of 30 days.
The rules are incredibly simple and can be found for both the above by searching on gov.uk.