From 1 April 2023, all the following must be true for your property to be eligible for business rates:
- it was available to let commercially (with the intention of making a profit) for 140 nights within a 12-month period
- it was actually let commercially for 70 nights within the same 12-month period
- you intend to make it available to let commercially for at least 140 nights in the following 12 months
Your property may be moved from business rates to Council Tax if it stops meeting the criteria.
How self-catering properties are assessed for business rates
The Valuation Office Agency (VOA) is responsible for maintaining the Council Tax and non-domestic rating (business rates) lists. We use these lists to determine whether a property is eligible for Council Tax or business rates.
The government determines the criteria for whether a self-catering property is eligible for business rates. The VOA makes its decisions based on this policy. There are other policies that may affect how much you pay – for example, if the property is a second home, you may pay a [x per cent] premium on top of the standard amount.
There are several ways the VOA maintains self-catering properties on the Council Tax and business rates lists:
• responding to information proactively provided by customers – for example, when they know they have met the letting criteria for business rates
• three-yearly requests for information, to inform a revaluation of all business rates properties
There is more information about eligibility criteria for remaining in the business rates list and how to tell the VOA if your property has met the criteria on; Apply for business rates for a self-catering property in England - GOV.UK
If you’d like to learn more, go to GOV.UK and search ‘Eligibility criteria for remaining in the business rates list’.
The VOA has updated its guidance; Apply for business rates for a self-catering property in England - GOV.UK making it easier to understand the criteria for a property to be valued for business rates.
It now includes:
• more information on the eligibility criteria
• what happens when a property isn’t available for letting (for example, when works are carried out)
• further information on areas where the VOA has had customer questions.
The VOA has created a new pdf form to be used when a property is currently valued as domestic but now meets the criteria to be valued for business rates.
Apply-for-business-rates-for-self-catering-properties-england
If you have any queries, please contact the business rates team on 01303 853223 or email business.rates@folkestone-hythe.gov.uk.