Rishi Sunak’s government has committed to introducing a nationwide short-term rental registration scheme.
Whether you pay business rates will depend on how many days your property is available to let each year and how many days it was actually let.
The Valuation Office Agency (VOA) will work out the rateable value of your property based on its type, size, location, quality and how much income you’re likely to make from letting it.
Rules until 31 March 2023
If your property is in England and available to let for short periods for at least 140 days per year, it will be rated as a self-catering property and valued for business rates.
Rules from 1 April 2023
If your property is in England, it will be rated as a self-catering property and valued for business rates if it’s both:
- available to let for short periods for at least 140 days in total over the current and previous tax years
- actually let for at least 70 days in the last 12 months
So, to continue to be eligible for business rates, from 1 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 and actually let commercially for 70 days or more in the previous 12 months.