Information about how holiday accommodation is rated and how to register
The government introduced new conditions from 1 April 2023 for self-catering accommodation to be included in the business rates list rather than the council tax list. Full details are available at GOV.UK.
If you're purchasing a property or changing the use of a property you already own, and it will be used as holiday accommodation, please see the information below on how to register it.
Self-catering and holiday let accommodation
Self-catering accommodation will be assessed for business rates rather than council tax only if the owner can provide evidence that:
- it will be available for letting commercially*, as self-catering accommodation, for short periods totalling at least 140 days in the year after the day in question
- during the previous year, it was available for letting commercially, as self-catering accommodation, for short periods totalling at least 140 days
- during the previous year, it was actually let commercially, as self-catering accommodation, for short periods totalling at least 70 days
* “Commercially” is defined in the legislation as being “on a commercial basis, and with a view to the realisation of profits”. This will usually mean the property being let at market rates and actively advertised, for example through commercial marketing sites and publications. Lettings to friends or relatives at zero or nominal rents will not be covered.
Newly available holiday lets
A property that becomes newly available as a holiday let (or that is purpose built as a holiday let) will be liable for council tax for each day until it has been available for 140 days and let out for 70 days in the previous 12 months. On the day that these two criteria are met, assuming the property will continue to be available for 140 days in the coming 12 months, it will qualify for a business rates assessment.
For example, a property that is first advertised as a holiday let would be liable for council tax for the next 140 days. If it was actually let out for 70 of these days, on day 141, it would qualify for a business rates assessment (provided the owner intended to advertise it for 140 days in the coming 12 months).
What you need to do
If you own a holiday let self-catering accommodation you should ensure you gather the evidence required to meet the new rules and apply below.
Register your self-catering holiday let with the Valuation Office Agency
A personal holiday home
If you own a second property, which is:
- furnished;
- no ones sole or main residence; and
- not commercially let for 140 or more days a year
you'll need to register for Council Tax.
Please visit our ‘Tell us you’re moving’ page to register.
Guest houses and Bed & Breakfast accommodation
We need to assess each Bed & Breakfast accommodation individually. We'll determine if the property should be in the Council Tax list or if the guest house element should be rated for business rates. This is normally determined on the size and number of bed spaces.
As a general guide, Bed & Breakfast establishments as a whole will be subject to Council Tax if:
- you (the owner) occupy part of the property; and
- you do not intend to offer short stay accommodation to more than six people simultaneously
If there are more than six bed spaces available, then it's likely that the guest house part of the property will need to be rated for business rates.
You can find further information on how guest houses and Bed & Breakfast establishments are rated on the Valuation Office leaflet.
Other considerations
Waste
If a property is not subject to Council Tax you won't have domestic bins or a domestic waste collection at the property. You'll need to opt into a commercial waste service. We offer business waste and recycling services. Or there are other local services available and you may wish to make your own enquiries to suit your needs.
Health and safety
Our Setting up an accommodation business provides guidance on matters such as:
- fire safety
- food safety
- planning permission
- and other useful information