Business rates when holiday let is on own property

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BenG
Posts: 7
Joined: Mon Jan 04, 2021 4:42 pm
Location: Cambridge
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Business rates when holiday let is on own property

Post by BenG »

Hi there.
A quick question regarding business rates. Our holiday lets, shortly to be going live, are part of the main property where we also live and are currently paying the usual council tax.
Once we get going with the holiday lets, does anyone know if I have to register for business rates, and therefore move off council tax, or does this depend upon how much revenue is coming in, or something else?
I've seen lots of posts about situations where the holiday lets are a separate property, and that seems clear, but not when they are combined with your own residence.
Thanks for any advice (we are in England btw)
Ben
Not a high-flyer, more a high-faller with style
ianh100
Posts: 598
Joined: Thu Jan 10, 2013 4:37 pm
Location: Sherborne Dorset

Post by ianh100 »

Hi Ben,
Our places are outright business rates but I am sure I have heard of people who are on a mixture or council tax and business rates. The best thing would be to talk to the valuation office. The business rates tend to be on the number of permanent bed spaces. You can search on their site for similar properties which will give you a steer on what the bill is likely to be.

I think your council tax bill would reduce and for the moment you would probably get small business rates relief.

There are other implications as you will then be liable for capital gains on the business percentage of the property when you finally sell it.
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