Self-catering properties - liability for Council Tax or business rates?

Which tax is applicable is a decision made by the Valuation Office Agency (VOA), not the council.

When deciding if the necessary criteria have been satisfied, the VOA will look at letting information from the previous operating year. Owners of self-catering properties need to be aware that it is the availability and actual letting of their property during the previous year that will determine whether the property will be subject to business rates rather than Council Tax.

In Wales, a self-catering property will be subject to business rates if over the last 12 months both the following statements were true: 

1. It was available to let for short periods commercially for at least 252 nights in total
2. It was actually let for at least 182 nights

More detailed information about this can be found on: Non-Domestic Rates for Self-Catering Properties in Wales (Business Wales) (opens new window)

Telling the VOA you believe your property should be subject to business rates (non-domestic rates)

If you're currently paying Council Tax on your self-catering property but it has met the criteria for business rates, you can tell the VOA by filling in their form: Application for business rates for self-catering properties (GOV.UK) (opens new window)

You can fill in this form if your property is either:  

• currently valued as domestic but you believe it is now eligible for business rates 
• a new self-catering property that has met the criteria over the last 12 months and is eligible for business rates

If the VOA decide your property should be subject to business rates, they will work out the rateable value of your property based on its type, size, location, quality and how much income you're likely to make from letting it.

If your property is made liable for non-domestic rates rather than Council Tax, you should check whether you are eligible for small business rates relief in Wales: Non-Domestic Rates - Small Business Rates Relief (Business Wales) (opens new window)