Airbnb cabin in garden

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    Airbnb cabin in garden

    My girlfriend (long term cohabitees but unmarried) bought a garden cabin to use as her art studio and put it in the back garden (I am the house owner). She is now thinking of letting it out for short stays on Airbnb or similar. We both do self assessment tax returns and I if wonder if income from Airbnb should be declared by me as the overall home/garden owner or by her as the Cabin owner and Airbnb account holder? Any advice would be most appreciated

    #2
    The income belongs to whoever receives it and benefits from it.

    If you have demonstrably separate money, and if your girlfriend receives the income, it's her tax affair.
    If you mix money (or you receive other benefits from the business) it's probably split.

    It doesn't have to be 50:50, you can agree a different split for the business and notify HMRC of what it is.

    If it's going to be a serious income stream, get some proper advice, though.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      Suggest you check with council planning dept & housing dept if such use is permitted: Presumably water, electric, sewer connected?

      - put it like this, if we found next door was having AirBnB "guests" in their garden the council would be informed (and HMRC probably also) . Ditto probably from anyone else next door to the property.

      Since an AirBnB occupant could be an AST tenant (see
      https://landlordlawblog.co.uk/2016/1...upation-types/
      - suggest you ensure there is EPC, any GSC, EICR etc etc etc etc..

      Suggest also you investigate AirBnB problems: Even the Daily Wail can help you with that one...
      https://www.dailymail.co.uk/travel/t...ests-time.html

      And whoever is "landlord" does some training in landlord/tenant law (It's a minefield).

      PS People don't always make a profit as a landlord (any type of landlord). I've been a landlord since 2000: Most years I made a profit, but not always....
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

      Comment


        #4
        Does the art studio have all the necessary services in it?

        Comment


          #5
          The LA will likely register your shed for business rates which will stick even if you stop Airbnb.

          Then you'll get had for CGT when you sell.

          And you won't be able to let for more than 90 days in London (countrywide once other areas cotton on they can make money from it too )

          Other than that seems a good plan. ..

          Comment


            #6
            You should apply to your local council for consent to operate short stay accommodation from a garden cabin .

            Comment


              #7
              Please answer all the questiond asked,, as although we are not leasehold solicitors, members experience can help sometimes in these out of the ordinary situations.

              Me, i would not want to holiday in a garden shed. Ever.
              But those who my be o/k. with it, provided you can legally do it, I would need it to be
              Fully insulated ( garden sheds are not usually insulated )
              If you have ever stayed in a caravan, which Are insulated, it still gets very cold at night.
              ( The difference between a house with double layer of bricks, the internal ones retaining "some" heat, to aluminium alloy exterior cladding and frame that do not retain heat )

              Therefore.( assuming you can legaly let a habitable properrty, with all mod cons )
              Is it fully insulated.
              Does the art studio have all the necessary services in it? as in your house bathroom.
              Will all traces of being an art studio be removed.
              Will all paint splatter be removed from floors and walls.
              Will - for the enjoyment of the temp residents, will they have full rights to the rear garden without being bothered by you two going into the garden and disturbing them., Your cats or dogs kept away from garden.


              Comment


                #8
                Thanks for all the input folks. Not as straightforward as we'd though, and we very much appreciated hearing about some of the pitfalls. I've had a chat with my partner and we have decided it's not an idea worth pursuing further.

                Comment


                  #9
                  Glad to see you weighed up the options / pitfalls and feasability of your thoughts and come to the decision not to let out the "shed".

                  Comment


                    #10
                    Google beds in sheds. So bad that some councils used helicopters with thermal imaging cameras to identify cheating crooked landlords ripping off vulnerable tenants. (Not suggesting you were planning that... )
                    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                    Comment


                      #11
                      A quick glace at https://www.waltons.co.uk/blog/can-i...my-garden-shed says it all.

                      Comment

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