The ongoing FIFA World Cup 2026 is creating a short-term rental boom across North America. According to Bloomberg and Fortune, hosts near World Cup stadiums in the United States have relisted their properties for several times their usual rates, while certain New Jersey listings have reportedly exceeded $6,000 per night.
Stories like these may make short-term letting look highly lucrative to landlords here in the UK. But they should be careful not to blindly copy trends from across the pond. That’s because, since 6 April 2025, the abolition of the Furnished Holiday Lettings regime has removed many of the tax advantages that previously made short-term lets beneficial.
This article explains what the World Cup short-let surge can teach UK landlords about today's tax rules and why higher nightly rates do not necessarily translate into better after-tax returns.
Key Takeaways
- The FIFA World Cup 2026 (11 June–19 July 2026) has pushed short-term rental rates in US host cities up by as much as 700%, with some listings above $6,000 a night
- The UK's Furnished Holiday Lettings (FHL) tax regime was abolished on 6 April 2025, so short-term lets are now taxed the same as standard rental property
- From 6 April 2027, rental profits face separate property income tax rates of 22%, 42% and 47% under the Finance Act 2026; these are two points above standard Income Tax rates
- HMRC estimates around 2.4 million landlords will pay more tax as a result of the new property income rates
- On sale, a former FHL no longer qualifies for Business Asset Disposal Relief, which means the gain is taxed at up to 24% rather than the old 10%
- If you live abroad and let UK property, the Non-Resident Landlord Scheme (NRLS) means 20% tax can be withheld at source unless HMRC approves gross payment
Why North America’s FIFA World Cup 2026 Short-Let Boom Matters to UK Landlords
It matters because the same surge in demand that is driving short-let profits around the FIFA World Cup 2026 could occur in the UK during future sporting events. But the tax advantages that exist in North America, particularly in American cities, do not exist here.
The World Cup is showing just how profitable a major sporting event can be for landlords. Across host cities in the United States, Canada and Mexico, demand for short-term accommodation has surged as supporters travel to matches and compete for a limited supply of places to stay. In one New Jersey suburb, AirDNA reported a 169% increase in short-term rental occupancy compared with the same period a year earlier.
UK landlords could soon see similar opportunities. The UK and Ireland will co-host UEFA Euro 2028, and the United Kingdom is currently the sole bidder for the FIFA Women's World Cup 2035. If either tournament generates comparable demand in host cities, landlords may consider converting their traditional rentals into short-term accommodation.
There is no doubt that short-term letting around major events can boost landlord revenue. The question, however, is whether higher revenue actually delivers higher profits.
There was once a time that it did, thanks to the Furnished Holiday Lettings (FHL) regime. Under FHL, qualifying properties benefited from a range of tax advantages that were not available to ordinary residential landlords.
That position changed following the Spring Budget 2024, when the Government announced that the Furnished Holiday Lettings regime would be abolished. The changes took effect from 6 April 2025 and removed many of the tax advantages previously associated with qualifying holiday lets.
The Tax Rule That Made All the Difference Went Away in April 2025
If a landlord had decided to turn a property into a short-term let a few years ago, the tax treatment could have been a major part of the appeal.
Until 6 April 2025, qualifying short-term lets fell under Furnished Holiday Lettings. Unlike an ordinary Buy-to-Let, an FHL was treated like a trading business. That brought several valuable advantages, including full mortgage interest deductibility, capital allowances on furnishings and equipment, and access to Business Asset Disposal Relief (BADR) (the relief that can reduce the Capital Gains Tax rate on qualifying business disposals to 10%).
That favourable treatment no longer exists. FHL was abolished by the Finance Act 2025, with the changes taking effect from 6 April 2025 for individuals and 1 April 2025 for companies. From that point onwards, former FHL properties became taxed in the same way as other residential rental properties.
In practical terms, that means mortgage interest is now subject to the same 20% basic rate tax credit restriction that applies to Buy-to-Let landlords, capital allowances are no longer available on new expenditure, and access to the 10% BADR disposal rate has been removed.
For landlords considering a short-term letting strategy around a major event such as Euro 2028 or the Women's World Cup 2035, this is a significant change. The potential for higher nightly rates remains, but the tax advantages that once strengthened the case for short-term letting are no longer part of the equation.
What A UK Short-Let Windfall Would Cost You
In many cases, between 20% and 45% of your additional profit could be lost to Income Tax, depending on your total taxable income and tax band.
A spike in short-let income is taxed at your marginal rate because rental profit is added to your other taxable income, such as salary, pension income, or profits from self-employment. This is where many event-based landlords get caught. The headline nightly rate can look spectacular, but the amount retained after tax is often far smaller.
A large short-let windfall can also push some landlords into a higher tax band. For the 2026/27 tax year, higher-rate income tax begins at £50,270 of taxable income. Once that threshold is crossed, additional rental profit may be taxed at 40% rather than 20%, further reducing the benefit of the extra income.
Worked Example: Your £12,000 Rental Income Becomes £6,000
Assume you earn a salary of £55,000 and let out a spare property during a four-week football tournament. That helps you generate £12,000 of rental income. With £2,000 of allowable expenses, you’re left with a taxable rental profit of £10,000.
Because your salary already places you in the higher-rate tax band, the additional rental profit is also taxed at 40% (rising to 42% from 6 April 2027 under the new property income rates).
Item | Amount |
|---|---|
Gross Rental Income | £12,000 |
Allowable Costs | (£2,000) |
Taxable Rental Profit | £10,000 |
Income Tax at 40% | (£4,000) |
Net Amount Retained | £6,000 |
This is why rental income viewed in isolation can be misleading. While the property generated £12,000 of rent, you only get to keep £6,000 after taxes. The difference becomes even more significant where a property is financed with borrowing, as mortgage interest on residential lettings generally attracts a 20% tax credit instead of a full tax deduction.
More Taxes Are Coming Your Way in 2027
From 6 April 2027, property income will be taxed at 22% for basic rate taxpayers, 42% for higher-rate taxpayers and 47% for additional rate taxpayers. These rates are two percentage points higher than the corresponding rates on earned income. The changes were introduced by Finance Act 2026 (sections 6 and 7, and Schedule 1) and received Royal Assent on 18 March 2026.
For landlords, the consequence of this will be that a larger share of their rental income will be lost to tax. HMRC estimates that around 2.4 million landlords will be affected by this increase.
Also changing from 2027 is how the £12,570 personal allowance is allocated. The allowance must now be set against employment, trading, or pension income before property income. This removes a planning opportunity that some landlords previously had to reduce the amount of rent exposed to higher tax rates.
All this means that a profitable short-let period during a major sporting event may generate less after-tax income than many landlords expect, particularly where the additional profit falls into the higher-rate or additional rate bands.
What If You Let UK Property From Abroad?
If you own UK property but live overseas, you can still benefit from the surge in demand that major events like the current World Cup create. However, your rental income may be subject to additional tax administration under the Non-Resident Landlord Scheme (NRLS).
If your usual place of abode is outside the UK, your letting agent (or your tenant if there is no agent) may be required to withhold basic rate tax (20%) from the rent before paying it to you. This applies even if the property is only being let for a short period.
You can apply to HMRC to receive rental income gross rather than having tax deducted at source. The relevant forms are NRL1i for individuals and NRL2i for companies. However, receiving rent gross does not remove your UK tax obligations; it simply changes how the tax is collected.
This is particularly relevant for overseas owners hoping to capitalise on a tournament-driven spike in demand. A four-week event can generate a substantial amount of rental income in a short period, making any withholding under the NRLS far more noticeable than it would be during a normal letting period.
Furthermore, many non-resident landlords assume that living abroad places their income outside the UK tax net. But UK rental income remains taxable in the UK regardless of where the owner lives.
Conclusion
The FIFA World Cup 2026 is a preview of a problem-in-waiting for us in the UK. A tournament windfall is real money, but the post-2025 rules mean far less of it stays with you than you expect — and the 2027 rate rise will further widen that gap.
If you are weighing up a short-term let, the question is not how much you’ll earn; it is the net figure after tax, band effects, and your residence position. And that is not a back-of-the-envelope calculation.
Reach Out to Experts
Thinking about renting out your property during Euro 2028 or the Women's World Cup 2035? Come talk to our property tax experts.
Whether you are a UK resident landlord, an overseas property owner, or simply exploring your options ahead of a major event, we can help you assess the most tax-efficient approach.
FAQs
The FIFA World Cup 2026 started on 11 June and will end on 19 July 2026. It is being held across 16 host cities in the USA, Canada and Mexico.
Since 6 April 2025, short-term lets are taxed as part of an ordinary UK property business. Profits are added to your other income and taxed at your marginal rate, with mortgage interest relief restricted to a 20% basic-rate tax credit. The old Furnished Holiday Lettings no longer apply.
It can. Rental profit stacks on top of your salary, so a large short-term windfall can lift your total income past the £50,270 higher-rate threshold for 2026/27.
Yes. From 6 April 2027, property income will be taxed at 22%, 42% and 47% under Finance Act 2026, two points above earned-income rates. HMRC estimates about 2.4 million landlords will pay more.
Yes. Under the Non-Resident Landlord Scheme, your agent or tenant withholds 20% tax from rent unless HMRC approves gross payment. You must still report the income through Self Assessment.
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