Compiled by HolidayLetContracts from the sources listed below, checked on 5 November 2026. We sell the templates linked on this page.
How to start a holiday let in the UK: the setup steps, nation by nation
To start a holiday let in the UK, check planning with your council, get your lender's consent and holiday let insurance, make the property safe from fire with a written fire risk assessment, arrange gas and electrical checks, and register or license it where your nation requires it. Since April 2025 the income is taxed like other property income, and business rates only apply once you meet your nation's letting thresholds.
Rules by nation at a glance
The UK nations now run quite different schemes for short-term lets. This table sets out what applies as of November 2026. Several of these rules are changing, so check the source pages before you rely on a date.
| Rule | England | Wales | Scotland |
|---|---|---|---|
| Licence or registration | National registration scheme not yet in force, expected to begin in March 2027 | Register with the Welsh Revenue Authority by 31 March 2027; a licensing scheme has a legal default start of March 2030 | Licence needed before taking bookings or receiving guests |
| Business rates instead of council tax | Available 140 nights and actually let 70 nights in 12 months, and intended to be available 140 nights in the next 12 | Available 252 days and actually let 182 days, with averaging over two or three years allowed from April 2026 | Not covered in this guide; ask your council |
| Visitor levy | None | Only where a council adopts it; Cardiff charges it on stays from 1 April 2027 | Not covered in this guide |
| Fire safety law | Regulatory Reform (Fire Safety) Order 2005 | Regulatory Reform (Fire Safety) Order 2005 | Fire (Scotland) Act 2005 |
Planning permission, your mortgage and insurance
Planning comes first because it can stop the project. In England, GOV.UK says your local planning authority decides whether you need planning permission, based on how the property is used and its impact on neighbours and the area, so contact your council before you buy or convert. In Scotland, secondary lets in a short-term let control area must confirm planning permission is in place or applied for when they apply for a licence.
If the property has a mortgage, ask your lender before you take guests. A residential mortgage may not allow short-term letting, and a specialist holiday let mortgage has its own terms.
GOV.UK recommends dedicated holiday let insurance, public liability cover, and buildings and contents cover suitable for short-term letting. In Scotland, buildings and public liability insurance are licence requirements for each booking.
Fire safety: the written risk assessment
Paid guest accommodation in England and Wales falls under the Regulatory Reform (Fire Safety) Order 2005. The Home Office guide for small paying guest accommodation says the responsible person, usually the owner or letting agent, must carry out a suitable and sufficient fire risk assessment and keep a record of it, including the findings.
In Scotland the Fire (Scotland) Act 2005 places a similar duty on the person who controls the premises, and fire safety is a licence condition. Our holiday let fire safety guide covers alarms, escape routes and extinguishers in detail.
Gas, electrical and furniture safety
HSE treats accommodation providers such as hotels and B&Bs as needing an annual gas safety check of appliances serving guests, by a Gas Safe registered engineer. Scotland's licence guidance requires an annual gas safety inspection of all gas pipes, flues and appliances.
For electrics, GOV.UK points English hosts to HSE electrical safety guidance. Scotland's licence guidance requires an inspection by a competent person at least every five years, an Electrical Installation Condition Report and portable appliance testing on appliances guests can use.
Upholstered furniture and mattresses must meet the Furniture and Furnishings (Fire) (Safety) Regulations 1988. Scottish hosts must keep records proving this, such as photos of labels or receipts.
Tax after the end of furnished holiday lettings
The furnished holiday lettings tax regime was abolished from 6 April 2025 for Income Tax and Capital Gains Tax, and from 1 April 2025 for Corporation Tax. Holiday let income is now part of your ordinary property business.
In practice, HMRC's policy paper says mortgage interest relief is restricted to the basic rate, capital allowances end for new spending, trading reliefs on gains no longer apply, and the income no longer counts as earnings for pension relief. Our guide to short-let tax before Self Assessment covers records and the property allowance.
Guest paperwork before the first booking
Once the property is safe and legal, set out the terms of each stay in writing. That means booking terms covering payment, cancellation and deposits, house rules, a privacy notice for the guest data you hold and a guest registration record.
Your written terms should match your property facts, such as the maximum number of guests in your fire risk assessment and, in Scotland, on your licence. See what a holiday let contract needs.
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Frequently asked questions
Do I need planning permission to start a holiday let?
It depends on the property and where it is. In England your local planning authority decides, and in Scottish control areas a secondary let needs planning permission or an application in place. Ask your council before you commit.
Do holiday lets pay business rates or council tax?
In England a let moves to business rates once it is available for 140 nights and let for 70 nights in 12 months, with the intention to keep letting. In Wales the thresholds are 252 days available and 182 days let, and that threshold is under review as of November 2026.
Is there still a furnished holiday lettings tax break?
No. The regime was abolished from 6 April 2025 for Income Tax and Capital Gains Tax and from 1 April 2025 for Corporation Tax. Holiday let income is now taxed like other property income.
Do I need to register a holiday let in England?
Not yet. As of November 2026, GOV.UK says the national registration scheme for short-term lets is not yet in force and is expected to begin in March 2027.
What do Welsh hosts need to do now?
Register with the Welsh Revenue Authority by 31 March 2027, even if your council does not charge the visitor levy. Registration is free, and Cardiff charges the levy on stays from 1 April 2027.
Sources
- Letting out a self-catering holiday home in England: rules and regulations, GOV.UK
- Apply for business rates for a self-catering property in England, GOV.UK
- Abolition of the furnished holiday lettings tax regime, HMRC, GOV.UK
- Making your small paying guest accommodation safe from fire, Home Office, GOV.UK
- Gas safety checks: who needs them, HSE
- Classification of self-catering properties for local tax purposes, Welsh Government
- Get ready to register your visitor accommodation in Wales, Welsh Government
- Visitor levy: rates of the levy, Welsh Government
- Licensing of visitor accommodation in Wales, Welsh Government
- Short term lets licensing scheme part 1: getting ready to apply, Scottish Government
Protect your property. Welcome guests with confidence.
Guest terms, deposit rules and house rules agreed at booking, so a bad weekend is handled by the paperwork.
Hosts who run the let as a business.
These articles are general guidance for UK holiday let owners and hosts, not legal, tax or insurance advice. Holiday let rules differ between England, Scotland, Wales and Northern Ireland, so check the position for your property. Our documents are editable templates to adapt to your own lets.