Any property that is used for commercial purposes may need to be rated for Non-Domestic Rates, depending on the exact nature of its usage.
Holiday cottages in England are assessed for rateable value if they are available for letting for 140 days or more per financial year.
If the property is available for letting for a total of 139 days (or less), then the property will not be subject to a rating assessment but will be allocated a Council Tax band.
Where the operator does not make a decision to limit the total period for which bookings will be accepted, the property will be liable for a rating assessment, regardless of whether actual lettings fail to exceed the 139-day limit in any given year.
If you let the property on a long-term basis so that it becomes, for example, someone's sole or main residence, then it will no longer be liable for a rating assessment. If it is already assessed for rating purposes, its entry will be deleted from the rating list and it will be banded for Council Tax from the date when it became a domestic property.
You can find further information at the Valuation Office Agency website.
For further information, please contact Revenues: