Capital gains assured tenancy vs Air bnb

Landlord Discussion
1

Long story short, I’ve got 2 properties and I’m out. Unfortunately I’ve been unwell for a while and the future doesn’t look fantastic.

I’m in contact with a solicitor who will undertake the full section 21 process on both properties (fingers crossed before the bill becomes an act and bites me on the arse). One will become my main residence, the other will be sold. I believe there is a lower rate of capital gains on a property listed on AirBnB as opposed to one that was recently vacated by a long term tenant, then put on the market.

I know I’ll have to furnish, but does anyone have more information/advice on this? Minimum timeframes etc?

Thanks

2

never heard of that. But have heard C G depends on what tax bracket you are in

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3

I’ve never heard of that either. My understanding is that you pay the regular rate of cgt on any property thats not you main home, whether its a rental, a b&b or a second home.

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4

Have you got a source for that? HMRC only list three asset types:

Gains from 6 April 2025 onwards

You’ll pay:

  • 18% on your gains from residential property
  • 32% on your gains from ‘carried interest’ if you manage an investment fund
  • 18% on your gains from other chargeable assets

Even if your Airbnb property fell into the “chargeable assets” description (which I doubt), then it’ll be taxed at exactly the same rate as residential property anyway.

5

remember when there was no CG on a property after a number of years had passed? When VAT was 8%? Landlords be prepared to be taxed more very soon.

6

Your autocorrect accidentally changed “everyone” to “landlords” in that post Colin :roll_eyes:

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7

Its more commonly a mixture of 18% and 24% for residential property, with the lower rate only for gain below the 40% tax threshold

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8

Yes, I think I got mixed up with air bnb and normal b and bs where you can claim relief dependant on what rooms you live in and what are available to rent.

I remember talking to a LL some years ago who was talking about turning one of his rentals into a b and b.

Live-in B&B owners face potential budget tax bombshell.