As part of the revaluation taking place for business rates in 2023 the qualifying criteria for Holiday Lets is changing.
The Valuation Office Agency (VOA) will be sending letters to all existing Holiday Lets advising of the changes to be made. At a later date, the VOA will send a Request for Information.
To qualify from 1 April 2023 your property must be (all of the following):
- 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.
- actually let commercially for 70 days or more in the previous 12 months.
If the evidence provided does not meet the new criteria the property will be banded as a Council Tax property and charged as such.
To find out more
- Go to GOV.UK and search 'VOA business rates self-catering properties'.
- If you would like to receive this letter in large print, braille or another format, please contact us on 03000 501 501 or using Relay UK on 18001 03000 501 501
Frequently asked questions
- When will the new eligibility rules come in?
- The new eligibility rules will be effective from 1 April 2023.
Will the new eligibility rules apply retrospectively?
- The new eligibility rules will take effect from 1 April 2023.
- However, we will look at Information about a property's letting during the 2022/23 operating year to assess whether the new eligibility rules have been met.
- If a property does not meet the new eligibility rules for the 2022/23 operating year, the property will be moved out of Business Rates and into the Council Tax Valuation list from 1 April 2023.
Will the new eligibility rules apply to new holiday lets?
- They will apply equally to all self-catering properties across England and Wales. New holiday lets will be liable for Council Tax each day until the property meets the eligibility rules. What do I need to do? Property owners do not need to tell the VOA anything now. A valuation officer will ask for this information in the 'Request for Information' form, which will be sent to property owners at a later date. We will consider whether they meet the new rules on the actual lettings for their property in 2022/23.
- To find out more, property owners can go to GOV.UK and search ‘VOA business rates self-catering properties'.
- There are a number of reliefs available to assist businesses, including the Small Business Rates Relief Scheme (SBRR).
- For further details, property owners should contact their local council.