Self-catering holiday accommodation

The criteria has changed for the assessment of properties being used as a holiday let.

From 1 April 2023, holiday lets and self-catering accommodation are valued for business rates if it is both:

• Available to let commercially, over short periods, for at least 140 nights in total during the current and previous tax years;
  &
  
• Actually let commercially with the intention of making a profit, over short periods, totalling at least 70 nights in the last 12 months
  

“Commercially” is defined in the legislation as being “on a commercial basis, and with a view to the realisation of profits”. This will usually mean the property being let at market rates and actively advertised, for example through commercial marketing sites and publications. Lettings to friends or relatives at below market rents will not be covered.

All new self-catering accommodation will initially need to be charged council tax for at least 140 days. Self-catering accommodation can only be assessed for business rates once all of the above criteria are met. Details of the new criteria can be found on the Gov.UK website.

The Valuation Office Agency will decide whether your holiday let should be listed for business rates or council tax. This decision is not made by Shropshire Council. If you meet the above criteria, you can ask the Valuation Office Agency to move your holiday let from Council Tax to Business Rates by completing a Self-catering holiday homes form of return and sending it to the email address shown on the form. To find the form visit the Gov.UK website.

Keeping us informed

Please advise us when there is a change in circumstances, for example if you've sold the property.