Glossary
Business rates for short lets
When a short let pays business rates instead of council tax, and why it matters.
What it means
A short let in England is assessed for business rates instead of council tax when it is available to let for at least 140 nights a year and actually let for at least 70. Wales sets the bar at 252 nights available and 182 let, and Scotland at 140 and 70. Once rated, small business rates relief may cut the bill to nothing for a low rateable value; if the tests aren't met, council tax applies, including any second-home premium. Thresholds and reliefs change, so check current rules with the Valuation Office Agency or your council.
Worked example
ExampleA rent-to-rent flat in England, available all year and let for 248 nights.
- Available 140+ nights?
- Yes
- Let 70+ nights?
- Yes
- Result
- Business rates, with small business relief possible
Put the right figure in the calculator: rates after relief, or council tax if the tests aren't met.
Information, not advice. Example figures are fictional and for illustration only.