The following info comes from Torridge Council but affects self-catering property owners across the border into Cornwall, too.
From April 2023, new eligibility rules for business rates will apply to self-catering properties in England and Wales.
Although the new eligibility rules do not come into force until 2023, the Valuation Office will look at letting information from the previous year for assessment purposes. Owners of self-catering properties need to be aware that the availability and the letting of their property during 2022-23 will determine whether they are eligible for Business Rates rather than Council Tax.
To continue to be eligible for business rates, from the 1st of April 2023, your property must be:
- available for letting commercially for short periods that total 140 days or more in the previous and current year.
- actually, let commercially for 70 days or more in the previous 12 months.
The new rules apply only to properties classified as self-catering holiday lets by the Valuation Office Agency within the broad use category of short-stay accommodation. They don’t apply to other types of accommodation in this category, such as hotels, hostels and guest houses.
Torridge District Councillor Bob Hicks – Lead Member for the Economy said:
“The Valuation Office Agency will contact property owners from the 24th of October 2022 to inform them of the new eligibility rules. Torridge is not involved in this process, but the Valuation Office Agency will directly notify the council of any properties moving from Business Rates to Council Tax. Please visit www.gov.uk and search VOA business rates self-catering properties to find out more.”