Self-catering and holiday let accommodation

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

What does this mean ?

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.

For example, if your property has 6 bed spaces and a price per single bed space of £800, your rateable value would be £4,800. The annual rates bill for 2021-2022 would be:

£4,800 x 49.9 pence = £2395.20. You may also be entitled to claim Small Business Rate Relief for your holiday let property, subject to certain conditions.

If you think that your holiday property should be business rated, please contact the business rates team.