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Tighter rules for holiday home business rates

Business rates. In England, owners of holiday accommodation are liable to business rates rather than council tax. This applies where the landlord intends to let the property on commercial terms for 140 days or more in the financial year. At first sight, this might not seem much of a financial advantage but for many landlords being liable to business rates allows them to claim small business rates relief (which can’t be claimed for council tax) and so escape rate charges completely.

New conditions. The government will introduce rules to tighten the conditions for holiday accommodation. They will focus on ensuring relief is only given for genuine holiday lets, perhaps by making checks on the number of days the properties are actually let. We’ll keep you informed as more details of the proposals are published.