{"id":6633,"date":"2022-07-25T10:58:31","date_gmt":"2022-07-25T10:58:31","guid":{"rendered":"https:\/\/www.schofields.ltd.uk\/blog\/?p=6633"},"modified":"2025-08-28T12:38:33","modified_gmt":"2025-08-28T12:38:33","slug":"second-home-rules","status":"publish","type":"post","link":"https:\/\/www.schofields.ltd.uk\/blog\/6633\/second-home-rules\/","title":{"rendered":"Holiday Let Council Tax & Business Rates Rules"},"content":{"rendered":"Reading Time: <\/span> 7<\/span> minutes<\/span><\/span>

\"regulations<\/p>\n

Latest news and changes<\/span><\/strong><\/h2>\n

The council tax, business rates and licencing rules<\/a> for second homes and holiday lets are evolving. This is due to the Governments concerns that the rise in second homes and holiday lets in rural communities is leading to a shortage of affordable housing for locals.<\/p>\n

We will update this page with the latest changes to the rules.<\/p>\n

England news<\/strong><\/span><\/h2>\n

Second home owners to pay double council tax<\/span><\/strong><\/h2>\n

In Yorkshire the proposed rise<\/a> is due to start on 1 April 2024 but in exceptional circumstances residents would be able to claim a council tax reduction. Currently council tax for a band D property in Whitby is \u00a32,116 for the 22\/23 year but under the new policy that would double to \u00a34,232.<\/p>\n

Cornish<\/a> second home owners are set to pay double in council tax from April 2024. It’s expected that\u00a0all English local authorities will have the ability to raise council tax on second homes.<\/p>\n

Requirement for planning permissions for short term lets<\/span><\/strong><\/h2>\n

New rules<\/a> to give communities greater control over short-term lets in tourist hot spots have been unveiled by the Government.\u00a0Second-home owners will be forced to seek planning permission to start renting out their properties as holiday lets in England, under plans to reduce housing pressure in tourist hotspots.<\/p>\n

Ministers intend to alter planning laws by the end of the year to give councils the power to ban future holiday lets if their local area does not have enough affordable housing to rent or buy.<\/p>\n

Wales news<\/strong><\/span><\/h2>\n

New tax rules for second homes in Wales<\/strong><\/span><\/h2>\n

The Welsh Government has announced an increase to the maximum level of council tax for second homes, as well as changes to the business rates criteria.<\/p>\n

Second home owners face a potential 300% council tax rise <\/span><\/strong><\/p>\n

The Welsh government has declared it is increasing the maximum level that local authorities can set council tax on second homes. Currently, the maximum premium councils can charge is 100 per cent \u2013 so the new policy constitutes a possible tax rise of 200 per cent.<\/p>\n

Business rates criteria changes<\/strong><\/span><\/p>\n

The criteria for self-catering holiday lets in Wales qualifying for business rates rather than council tax will also change from next year.<\/p>\n

Currently, properties available to let for a minimum of 140 days in any 12-month period, and actually let for at least 70 days, pay business rates rather than council tax. But from April 2023, properties must be available to let for at least 252 days and actually let for at least 182 days in any 12-month period to qualify. If you cannot meet these thresholds, then you will be required to revert to paying Council Tax.<\/p>\n

Tourism leaders in Wales say these new letting requirements will frankly be impossible for many self-caterers to meet and will decimate the Welsh tourism industry.<\/p>\n

For further information visit the Welsh Government website: https:\/\/gov.wales\/new-tax-rules-second-homes<\/a><\/p>\n

Changes proposed to Wales holiday let tax rules (August 2025)<\/strong><\/span><\/p>\n

New proposals<\/a> have been suggested to adjust the way tax rules for holiday let owners in Wales are applied. Subject to the outcome of a consultation, the tax rules for owners of self-catering holiday accommodation in Wales could change following proposals put forward by the Welsh government.\u00a0Since 2023, self-catering properties must be available for 252 days and let out for 182 days each year to pay non-domestic rates instead of the higher council tax.<\/p>\n

The Welsh government is now proposing<\/a> changing this to an average of 182 days let over several years.<\/p>\n

Welsh councils to get powers to control numbers of second homes and holiday lets<\/span><\/strong><\/h2>\n

-Councils will be able to control numbers of second homes and holiday lets under new Welsh government plans<\/a>.
\n-Local authorities will also be able to make amendments to the planning system, requiring planning permission for change of use from a primary home, second home and short-term holiday accommodation.
\n-Work will also begin on allowing councils to apply increased Land Transaction Tax (LTT) on the purchase of second homes and holiday lets.<\/p>\n

For further information visit the Welsh Government website: https:\/\/gov.wales\/new-package-measures-address-high-numbers-second-homes<\/a><\/p>\n

Plans for a visitor levy in Wales<\/span><\/strong><\/h2>\n

The legislation will enable local authorities to introduce a small charge paid by people staying in commercially-let overnight visitor accommodation.
\nhttps:\/\/www.gov.wales\/new-research-shows-majority-think-tourists-should-contribute-to-costs-of-maintaining-destinations<\/a><\/p>\n

Scotland news<\/span><\/strong><\/h2>\n

Plans to double council tax for second home owners<\/span><\/strong><\/h2>\n

Councils could charge the owners of second homes in Scotland double the full rate of council tax under new plans to help increase available housing. The proposed changes<\/a> would enable councils to charge up to double the full rate of council tax on second homes from April 2024.<\/p>\n

Tourists could be charged extra for holidaying in Scotland<\/span><\/strong><\/h2>\n

Legislation to give local authorities the power to apply a visitor levy, or “tourist tax” has been published<\/a>. It is expected the charge could be introduced by 2026.<\/p>\n

\n

\"Wooden<\/p>\n

A guide to holiday let business rates & council tax<\/strong><\/span><\/h2>\n

Whether you use your second home for holidays or rent it out to paying guests as a holiday let, you will need to pay either council tax or holiday let business rates. To help you understand the difference between the two, and which you qualify for, we\u2019ve answered the most frequently asked questions in this guide.<\/p>\n

What\u2019s the difference between holiday let business rates and council tax?<\/strong><\/span><\/h2>\n

Holiday home council tax<\/strong><\/span><\/h3>\n

Council tax is an annual fee that your local council charges for the services it provides in the area.<\/p>\n

If your holiday home is mainly used by yourself, family and friends for holidays or is let out for less than 20 weeks per year, it will qualify to pay council tax.<\/p>\n

The amount of council tax you pay depends on the value of your home and its location. You can check your holiday home council tax band and the amount of tax you have to pay here: https:\/\/www.gov.uk\/council-tax-bands<\/a>.<\/p>\n

Holiday let business rates<\/strong><\/span><\/h3>\n

Holiday let business rates are a tax levied on properties that are let commercially. Similar to council tax, they are used to help pay for local services. If you are letting your holiday cottage commercially, rather than just for your own use, it is likely that you will be subject to paying business rates rather than council tax.<\/p>\n

To qualify for business rates in England rather than council tax, your property must be classified by HMRC as a Furnished Holiday Let, rented out for a minimum of 70 days and be available to let short-term for at least 140 days a year.<\/p>\n

If your property is in Wales To continue to be eligible for business rates, from 1 April 2023 your property must be\u00a0available to let commercially for short periods that total 252 days or more in the previous and current year and actually let commercially for 182 days or more in the previous 12 months.<\/p>\n

If the owner cannot provide proof, they won\u2019t be allowed to switch to business rates and will pay council tax.<\/p>\n

How to calculate your holiday let business rate<\/strong><\/span><\/h3>\n

You can calculate your holiday let business rate by using the rateable value (which is calculated by the Valuation Office Agency) based on the rental value of the property and then use the business multiplier set by the government.<\/p>\n

If your holiday let is located in England or Wales, the Government has an online tool you can use<\/a>.<\/p>\n

There is a different way to work out business rates for your property if it\u2019s based in Scotland<\/a> and here<\/a> or Northern Ireland<\/a>.<\/p>\n

What are the benefits of paying business rates rather than council tax?<\/strong><\/span><\/h3>\n

If your holiday home qualifies as a furnished holiday let, it is classed as a business and there are various benefits available.<\/p>\n

What qualifies as a \u2018furnished holiday let\u2019?<\/strong><\/span><\/h2>\n

Your property will need to meet the following conditions:<\/p>\n