Information about how holiday accommodation is rated and how to register
The government has introduced new conditions from 1 April 2023 for self-catering accommodation to be included in the business rates list rather than the council tax list. Full details are available here.
Type of accommodation
If you're purchasing a property or changing the use of a property you already own, and it will be used as holiday accommodation, please see the information below on how to register it.
Self-catering and holiday let accommodation
A property must meet all three conditions below before it can be assessed for business rates instead of Council Tax:
- Commerciality: the property must be let & marketed on a commercial basis with a view to making a profit. This will usually mean the property being let at market rates and actively advertised, for example through commercial marketing sites and publications. Lettings to friends or relatives at zero or nominal rents will not be covered.
- Availability: the property must have been available for short term commercial letting for a minimum of 140 days in the previous 12 months. In addition, the ratepayer must intend for the property to continue to be available for commercial letting for short periods totalling 140 days or more in the following 12-month period.
- Letting: the property must have been commercially let for at least 70 days in the previous 12-month period.
Register your self-catering holiday let with the Valuation Office Agency
A personal holiday home
If you own a second property, which is:
- furnished;
- no ones sole or main residence; and
- not commercially let for 140 or more days a year
you'll need to register for Council Tax.
Please visit our ‘Tell us you’re moving’ page to register.
Guest houses and Bed & Breakfast accommodation
We need to assess each Bed & Breakfast accommodation individually. We'll determine if the property should be in the Council Tax list or if the guest house element should be rated for business rates. This is normally determined on the size and number of bed spaces.
As a general guide, Bed & Breakfast establishments as a whole will be subject to Council Tax if:
- you (the owner) occupies part of the property; and
- you do not intend to offer short stay accommodation to more than six people simultaneously
If there are more than six bed spaces available, then it's likely that the guest house part of the property will need to be rated for business rates.
You can find further information on how guest houses and Bed & Breakfast establishments are rated on the Valuation Office leaflet.
Other considerations
Waste
If a property is not subject to Council Tax you won't have domestic bins or a domestic waste collection at the property. You'll need to opt into a commercial waste service. We offer business waste and recycling services. Or there are other local services available and you may wish to make your own enquiries to suit your needs.
Health and safety
Our Tourism and Travel page provides guidance on matters such as:
- fire safety
- food safety
- planning permission
- and other useful information