Business Rates for Holiday Let Accommodation
The rules around holiday let and self-catering accommodation are changing on 1 April 2023.
Whether you pay business rates will depend on how many days your property is available to let each year and how many days it was actually let.
The Valuation Office Agency (VOA) will work out the rateable value of your property based on its type, size, location, quality and how much income you're likely to make from letting it.
From April 2023, new eligibility rules for business rates will apply to self-catering properties in England and Wales.
If you don't meet these rules your property will become eligible for paying Council Tax.
The rules will be used in assessments from 1 April 2023. The information about lettings during the 2022/23 operating year will be used to determine whether a property is eligible.
Rules until 31 March 2023
If your property is in England and available to let for short periods for at least 140 days per year, it will be rated as a self-catering property and valued for business rates.
Rules from 1 April 2023
If your property is in England, it will be rated as a self-catering property and valued for business rates if it's both:
- available to let for short periods for at least 140 days in total over the current and previous tax years
- actually let for at least 70 days in the last 12 months
There are different rules for properties in Wales and Scotland.
How will you be contacted
The Valuation Office Agency (VOA) started contacting ratepayers from 24 October 2022 to advise them about the new eligibility rules. Self-catering properties currently on the rating list will receive a letter with this information shortly.
During 2023-24, Valuation Officers will send a 'Request for Information' form to affected properties. The information on this form will be used to check that your property meets the eligibility rules for self-catering properties.
It's important that you return the form on time.
Will the new eligibility rules apply to new holiday lets?
The rules will apply equally to all self-catering properties across England and Wales.
New holiday lets will be liable for council tax each day until the property meets the eligibility rules.
To find out more, property owners can go to Gov.UK - Changes to Business Rates Rules.