Business rates and council tax
If you own or manage a holiday let in York, you are running a business. You need to pay either council tax or business rates on the property.
As of the 1 April 2023, holiday let properties must meet all three of the following conditions before they can be assessed for business rates instead of council tax:
- Commerciality: your property must be let and marketed on a commercial basis with a view to making a profit
- Availability: your property must have been available for short term commercial letting for a minimum of 140 days in the previous 12-months. In addition, you must intend for your property to continue to be available for commercial letting for short periods totalling 140 days or more in the following 12-month period
- Letting: your property must have been commercially let for at least 70 days in the previous 12-month period
Existing holiday lets
If you own or manage an existing holiday let, and you have already registered for council tax or business rates, you don't need to do anything.
From 1 April 2023 the Valuation Office Agency will check if existing holiday lets meet the new criteria for business rates and will contact you directly if so.
New holiday lets or change of use
From 1 April 2023, if you're:
- purchasing a property and using it as a holiday let, or
- changing the use of a property you already own to be used as holiday accommodation
You will need to check the criteria and register for either business rates or council tax.
Registering your holiday let for business rates
To register your holiday let for business rates, you will need to email: business.rates@york.gov.uk with the following information:
- details of how many nights a year is it available to let
- the full property address
- the date it became available to let
- a link to where the property is advertised online
- a contact address for you
- evidence, such as receipts for rental income to prove the property has been commercially let for at least 70 days in the previous 12-month period
Without this evidence, your property would remain liable for council tax rather than business rates.
Once this information is received and if it is appropriate to move the property from council tax to business rates, we will ask the Valuation Office Agency to do so. Once reported it may take approximately 12-weeks to be approved.
Registering a holiday let for council tax
If you own a second property, which is:
- furnished;
- no one's sole or main residence; and
- not commercially let for 140 or more days a year
You'll need to register for council tax by contacting the council tax team on email: council.tax@york.gov.uk or telephone: 01904 551558.