New eligibility rules for business rates self-catering properties in England and Wales have been introduced – and failure to meet the rules will make properties eligible to pay council tax.
For properties in England to continue to be eligible for business rates properties must be
- available for letting commercially for short periods that total 140 nights or more in the previous and current year.
- actually let commercially for 70 nights or more in the previous 12 months.
The rules apply to properties that are let with the intention of making a profit. This usually means the property is let at market rates and actively advertised. For example, using holiday cottage websites, estate agents, and tourist web pages to advertise the property. Any non-commercial lettings, for example lettings to family and friends for amounts below the market rates, would not count towards commercial lettings.
The new rules apply only to properties classified as self-catering holiday lets by the VOA within the broad use category of short stay accommodation. They don’t apply to other types of accommodation in this category, such as hotels, hostels and guest houses.
There won’t be any exceptions in the application of the new eligibility rules. They will apply equally to all self-catering properties across England and Wales.
New self-catering properties will be liable for Council Tax until the property meets the eligibility rules.
Valuation officers conduct a rolling programme to check that properties listed as self-catering properties in the non-domestic rating list meet the eligibility rules. A valuation officer will ask for this information in the ‘Request for Information’ form,It will consider whether the property meets the new rules on actual lettings for properties in 2022/23.
