Government may ease controversial holiday lets thresholds
Summary
A consultation is considering changes to the occupancy thresholds that determine whether holiday lets qualify for business rates rather than being treated as domestic second homes. The proposals may include a modest reduction in the 182-day booking requirement and possible exemptions for certain types of commercial holiday accommodation, including some in Wales and in seasonal tourism settings.
Why it matters
Surveyors involved in valuation, taxation advice, or rural and holiday accommodation work may need to understand how any threshold changes could affect rateable status and council tax treatment. The consultation also signals potential shifts in how mixed-use and restricted-occupancy properties are assessed for commercial versus domestic use.
Key points
- Current rules require holiday lets to be available for 252 days and booked for 182 days to qualify for business rates.
- Properties that miss the thresholds are usually treated as second homes and may face higher council tax, including premiums up to 300%.
- The consultation is considering a reduction in the 182-day occupancy threshold.
- Possible exemptions are being explored for wider tourism businesses, multi-unit accommodation, planning-restricted properties, and some self-catering units on farms or within owners’ grounds.
- Operators are advised to continue planning against the existing rules while the consultation remains open.
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