Whether your holiday let pays business rates or council tax comes down to how many days it's available and how many nights it's actually let. Get it wrong and you can pay far more than you expected.
England: the 140/70 rule
Since 1 April 2023, a self-catering property in England is only business-rated if:
- It will be available to let for at least 140 days in the coming year, and
- In the previous year it was available for at least 140 days and actually let for at least 70 days.
If it doesn't pass, it goes back to council tax. If it's not your main home, councils in England can also charge a second-homes premium of up to 100% (since April 2025), so it could cost double.
On business rates, some small properties qualify for small business rate relief, which can cut the bill a lot. Ask your council whether you qualify.
Wales: the 252/182 rule
Wales is much stricter. Since April 2023 a self-catering property must be:
- Available to let for at least 252 days a year, and
- Actually let for at least 182 days.
Miss these and you pay council tax, and Welsh councils can charge premiums of up to 300% on second homes. In parts of Wales the premium is high, so occupancy really matters.
Wales also has a visitor levy and a provider register. See our Wales visitor levy guide.
Side by side
| England | Wales | |
|---|---|---|
| Available to let | 140 days | 252 days |
| Actually let | 70 days | 182 days |
| If you fail | Council tax, second-home premium up to 100% | Council tax, premium up to 300% |
How to hit the tests
- Price to fill quiet months. Off-season nights at a fair rate count just as much towards the tests as August.
- Take longer stays. Contractors, relocation and insurance guests fill weekday and winter gaps. See contractor accommodation.
- List on more than one platform. Airbnb, Booking.com and direct bookings together reach more guests.
- Keep records. You'll need to prove the days let. Save booking reports every year.
- Limit your own use. Nights you block for family don't count as available.
Where we come in
Our holiday let management is built around occupancy: dynamic pricing, several booking channels and longer-stay guests to help you clear the day tests every year. Check what your property could earn with the free estimate.
General information only. Rules and reliefs change, so confirm with your council, the Valuation Office Agency or an adviser.
Thinking of letting your property short-term?
We manage Airbnb, serviced accommodation and holiday lets across England and Wales, from city flats to countryside cottages and hotels. See what yours could earn.
This guide is general information, not legal, tax or financial advice. Rules change, so check GOV.UK, GOV.WALES or a qualified adviser before you act.