Business Rates frequently asked questions

Holiday properties that are available to let on a commercial basis for short-term lets for more than 20 weeks of the year may be subject to payment of Business Rates rather than Council Tax

This type of property will have a Rateable Value applied to it instead of a Council Tax band. The amount of rates you will have to pay is calculated by multiplying the rateable value by the annual rate in the pound.

The rateable value is set by the Valuation Office Agency who apply a price per bed space based on the size, type and location of the property. The VOA will send you a questionnaire and ask you to provide evidence of lettings and how the property is marketed.

You may be eligible to apply for Small Business Rate Relief for your holiday let property, subject to certain conditions.

New eligibility rules came into force from 1 April 2023. For assessment purposes the VOA will look at letting information from the previous operating year. Owners of self-catering properties need to be aware that it is the availability and actual letting of their property during 2022-23 that will determine whether they are eligible for Business Rates rather than Council Tax.

From April 2023 your property must be:

• Available for letting commercially (with a view to making a profit) for short periods. These short period must total 140 days or more in the previous, and in the current year
• Actually let commercially for 70 days or more in the previous 12 months.

All new self-catering accommodation must initially be entered into the Council Tax list, for at least the first 140 days. Only when all the eligibility rules have been met can the property be deleted from the Council Tax list and entered into the Non-Domestic Rating (NDR) list.

The property must have been made available from 11 November 2022, or earlier, to meet the 'availability test' on 1 April 2023. All other rules must be met

You can find out more on the Gov.UK website here Self-catering holiday accommodation

A copy of the questionnaire that holiday let operators will be expected to complete can be viewed here Self Catering Holiday Homes Questionnaire