New Self-Catering Lettings Rules: Avoid Paying Council Tax from April 2023
From April 1, 2023, fresh business rates rules hit self-catering properties in England and Wales. Fail to follow them, and your property could be slapped with Council Tax instead.
The Changes: What You Need to Know
The rules differ depending on where your property sits.
England
- Your property must be available for commercial short-term lets for at least 140 nights across the previous and current years.
- It must have been commercially let for a minimum of 70 nights in the past 12 months.
Wales
- Your property must be available for commercial short-term lets for at least 252 nights across the previous and current years.
- It must have been commercially let for at least 182 nights in the previous 12 months.
The Valuation Office Agency (VOA) counts a night as any time occupied before midnight. For example, renting from Friday evening to Sunday morning counts as two nights.
What Counts as Being Let Commercially?
‘Commercially let’ means letting your place to make a profit. That means setting market rates and actively advertising — think holiday cottage sites, estate agents, tourist boards.
If you’re letting to family or friends below market rate, these don’t count.
Who’s Impacted?
These new rules only hit properties classified by the VOA as self-catering holiday lets under short stay accommodation. Hotels, guest houses, and hostels aren’t affected.
No exceptions — the rules apply equally across England and Wales.
New self-catering properties start on Council Tax until they meet the business rates criteria.
When and How Properties Will Be Checked
The VOA will roll out checks during 2023/24, sending ‘Request for Information’ forms to assess your letting records from 2022/23. Everyone will be assessed against the new rules starting 1 April 2023.
Properties could be reassessed if there are changes — like switching from self-catering to private use.
While you must notify VOA of changes promptly, there’s no need to report if you won’t meet the rules until after 1 April 2023, as assessments begin from that date.
Don’t Risk a Fine: Return Your Information Form
VOA’s ‘Request for Information’ forms are legal documents. Complete them accurately and on time to avoid financial penalties or even prosecution for false info.
Keep on top of these new rules — or get ready for a nasty surprise on your council tax bill!
