Self-catering holiday accommodation

The criteria changed from 1 April 2023 for the assessment of properties being used as holiday lets. Holiday lets and self-catering accommodation are valued for business rates if they're:

• Available to let commercially, over short periods, for at least 140 nights in total during the current and previous tax years, and
  
  
• 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 won't 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. More details 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 isn't 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 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's a change in your circumstances, for example if you've sold the property.