Changes in business rates eligibility for holiday lets

Although the new eligibility rules came into force on 1 April, for assessment purposes the VOA will use letting information from the previous operating year.

It is the availability and actual letting of self-catering properties property during 2022 to 2023 that will determine whether the property is eligible for business rates rather than Council Tax.

The new eligibility rules

In England, your property must:

• be available for letting commercially (with a view to making a profit) for short periods. These short periods must total 140 days or more in the previous, and in the current, year
• have actually been let commercially for 70 days or more in the previous 12 months 

New holiday lets will be liable for Council Tax until the property meets the eligibility rules. The VOA has emailed customers currently on the Rating List about the new eligibility rules. They are also contacting owners in England by writing to their billing address to confirm their eligibility.

When properties will be assessed

Valuation officers conduct a rolling programme to check that properties listed as self-catering in the non-domestic rating list meet the eligibility rules. Properties may also be reassessed for other reasons, for example if there has been a change of circumstances, or a change of use.

The rolling programme means the VOA could write to customers asking for this information at any time during the 2023 to 2024 operating year.

But the date it will use to assess whether the new eligibility rules have been met is 1 April 2023.

Further information on eligibility can be found on GOV.UK

If you are eligible and want to change

If you meet the criteria and wish to change from paying Council Tax to business rates on your property, you can:

Sign in or set up a business rates valuation account on GOV.UK
Telephone: 03000 501 501