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.

Tougher conditions for small business rates relief are to be introduced for holiday lets liable to business rates. They will require landlords to provide more evidence to show that their properties meet the criteria to count as holiday accommodation.

This article has been reproduced by kind permission of Indicator – FL Memo Ltd. For details of their tax-saving products please visit or call 01233 653500.