Any property that is used for commercial purposes may need to be rated for non-domestic rates (also known as business rates), depending on the exact nature of its usage.
The way holiday lets are rated will be changing from 1 April 2023.
Up to 31 March 2023
If a 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 non-domestic rates .
In order for the holiday let or cottage to be assessed with a rateable value, you need to send the following evidence directly to the Valuation Office Agency (VOA) -
- Proof it is available to let for at least 140 days or more per financial year
- Proof that it is advertised for use as a holiday let
- Proof of planning permission if needed
From 1 April 2023
If a property is in England, it will be rated as a self-catering property and valued for non-domestic rates if it is both -
- Available to let for short periods for at least 140 days in total over the current and previous tax years and
- Actually let for at least 70 days in the last 12 months
In order for the holiday let or cottage to be assessed with a rateable value, the VOA will need to see the following evidence -
- Proof it is available to let for at least 140 days or more per financial year
- Proof it has actually been let for at least 70 days in the last 12 months - e.g. receipts, booking slips
- Proof that is advertised for use as a holiday let - e.g. website page/advert
- Proof of planning permission if needed
Once you have sent the above to the VOA, they will complete their own checks and may ask you directly for more information. They will then make a decision on what the rateable value for the property will be and notify both the owner and the council so we can create a new non-domestic rates account and issue a bill.
If the property does not meet the eligibility criteria it will be given a council tax band.
If a 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.
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.
For further information, please contact Revenues:
