Should my holiday let pay Council Tax or business rates?
A property run as a genuine self-catering holiday let, available to let to the public for enough of the year, may be assessed for business rates rather than Council Tax. The rules require the property to actually be available and let for set periods. You check with the valuation authority and council.
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Check what you're owed →Where a furnished property is a true holiday let, made available to the public as a business, it can be moved off the Council Tax list and onto the business rates list instead. This recognises it as a commercial operation rather than a private second home.
To qualify, the property generally has to be available for letting to the public for a minimum number of days in the year and actually let for a required number of those days. These thresholds are designed to make sure only genuine, actively run holiday lets are treated as businesses, not second homes dressed up as lets.
If your property does not meet the letting thresholds, it is likely to remain on Council Tax, possibly as a second home with a premium. So it is important to keep clear letting records and check the current rules with the valuation authority, and to review which treatment leaves you better off overall.
How to check holiday let business rates
- Check the letting record. Confirm how many days the property was available and actually let in the year.
- Compare with the thresholds. See whether your letting figures meet the days required for business rates.
- Contact the valuation authority. Ask the valuation authority to assess whether the property belongs on the rating list.
- Review your position. Check which treatment applies and whether any reliefs reduce your overall cost.
Frequently asked questions
- When does a holiday let pay business rates?
- When it is a genuine self-catering let available to the public and actually let for the required number of days, the valuation authority can move it to business rates.
- What are the key conditions?
- The property must be available for letting for a minimum number of days and actually let for a set number of those days each year.
- What if I do not meet the thresholds?
- It is likely to stay on Council Tax, possibly treated as a second home with a premium, rather than qualifying for business rates.
- Why does it matter which applies?
- The two regimes are charged differently, so the right treatment can change your costs. Keep letting records and check the current rules.
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