This Ministry of Housing, Communities and Local Government (MHCLG) consultation seeks views on the council tax and business rates treatment of holiday lets in England. It considers options to strengthen the criteria for holiday lets to be liable for business rates, and therefore potentially at a financial advantage due to the Small Business Rate Relief scheme. Such measures could help to ensure that only owners of properties that are genuine businesses are liable for business rates, rather than council tax.
In essence to qualify as a business, and pay business rates which can be rebated to £0 for businesses with a rateable value of £12k or less, as opposed to the alternative of paying Council Tax, letting businesses will in future have to demonstrate that in the previous tax year their property was both available for at least 140 day and let for at least 70 days. This is in line with the practice already adopted in other Home Nations.
Comments on the proposed changes to existing treatment of holiday lets should be sent to MHCLG by no later than 16 January 2019. Comments for inclusion our own British Destinations response and/or for use in inform a Tourism Alliance response would be welcomed ASAP and by no later than say Friday 4 January 19.
The consultation paper can be accessed at: 2018 Holiday_Lets_Consultation