Whether you pay business rates will depend on how many days your property is available to let each year and how many days it was actually let.
The Valuation Office Agency (VOA) will work out the rateable value of your property based on its type, size, location, quality and how much income you're likely to make from letting it.
From April 2023, new eligibility rules for business rates will apply to self-catering properties in England and Wales.
If you don't meet these rules, your property will become eligible for paying Council Tax.
The rules will be used in assessments from 1 April 2023. The information about lettings during the 2022/23 operating year will be used to determine whether a property is eligible.
Rules from 1 April 2023
To be eligible for business rates, your property must be both:
- available and advertised for letting commercially for short periods that total 140 nights or more in the previous and current year,
- actually let commercially for 70 nights or more in the previous 12 months.
Until your property meets all the above criteria, it will continue to be banded for Council Tax.
There are different rules for properties in Wales and Scotland.
Will the new eligibility rules apply to new build holiday lets?
The rules will apply equally to all self-catering properties across England and Wales.
New holiday lets will be liable for council tax each day until the property meets the eligibility rules.
To register your new build property, please use the button below
How will you be contacted
The Valuation Office Agency (VOA) started contacting ratepayers from 24 October 2022 to advise them about the new eligibility rules. Self-catering properties currently on the rating list will receive a letter with this information shortly.
During 2023-24, Valuation Officers will send a 'Request for Information' form to affected properties. The information on this form will be used to check that your property meets the eligibility rules for self-catering properties.
It's important that you return the form on time.
Further information
To find out more, property owners can go to Gov.UK - Changes to Business Rates Rules.