Any property that is used for commercial purposes may need to be rated for non domestic rates (Business Rates) depending on the exact nature of its usage.

How self catering properties are assessed for Business Rates

The Valuation Office Agency (VOA) is responsible for maintaining the Council Tax and non-domestic rating (Business Rates) lists. We use these lists to determine whether a property is eligible for Council Tax or Business Rates. The government determines the criteria for whether a self-catering property is eligible for Business Rates. The VOA makes its decisions based on this policy. There are other policies that may affect how much you pay – for example, if the property is a second home, you may pay a premium on top of the standard amount.

There are several ways the VOA maintains self-catering properties on the Council Tax and Business Rates lists:

• responding to information proactively provided by customers – for example, when they know they have met the letting criteria for Business Rates
• three-yearly requests for information, to inform a revaluation of all Business Rates properties

Rules from 1 April 2023

From 1 April 2023, all the following must be true for your property to be eligible for Business Rates:

• it was available to let commercially (with the intention of making a profit) for 140 nights within a 12 month period
• it was actually let commercially for 70 nights within the same 12 month period
• you intend to make it available to let commercially for at least 140 nights in the following 12 months

Your property may be moved from business rates to Council Tax if it stops meeting the criteria.

Nights you cannot include

When calculating the nights your property was available to let or actually let, you cannot include:

• nights that your property was closed for repair or refurbishment
• nights that the site where the property is located was closed
• nights you were using the property privately, including letting it to friends or family for a discounted rate
• future bookings that have not happened yet

Stays over 28 nights are not classed as short-term lets. You cannot count them as nights your property was let. You can count them as nights your property was available, but only if the property could have been booked for 28 nights or less.

My property is currently listed under Business Rates as a holiday let, but it is now someones sole or main residence or no longer meets the criteria of a holiday let.

If you wish to change your holiday let back to a domestic property you will need to report it as a check and challenge. 

More information

The council is not able to get involved with disputes with a properties banding or rateable value. If you dont agree with a decision the Valuation Office has made you will need to contact them directly.

You can find more information on the Valuation Office website or via telephone 03000 501501