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What is Business rates for holiday lets?

Last verified 31 October 2026

Business rates for holiday lets means a self-catering property in England is rated as a business instead of paying council tax, but only when it passes three tests on how often it is available and let.

Why it matters to landlords

GOV.UK says all three conditions must be met. The property must have been available to let commercially, with the intention of making a profit, for at least 140 nights in a 12-month period. It must have been let commercially for at least 70 nights in the same period. And you must plan to make it available for at least 140 nights in the following 12 months.

Some nights do not count. Closed nights for repair or refurbishment, private use including discounted lets to friends or family, and future bookings are all left out. Stays of more than 28 nights do not count toward the 70 let nights, and count towards the 140 available nights only if the property could have been booked for 28 nights or less. This page is England guidance, so check Wales, Scotland and Northern Ireland separately.

Example

Maya's cottage was available for 200 nights last year and let for 80, but one booking ran for 30 nights. Only 50 nights count towards the 70-night test, so she does not meet the conditions yet. She would need at least 20 more qualifying nights in a later 12-month period.

Holiday Lets and MTD After the FHL Rules Ended →

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More landlord tax terms: Landlord tax glossary