By the Unity Stays directors, Marcus Chong & Gadir Al-Khatib · Last updated 12 August 2026
In short: A short let pays business rates rather than council tax only if it meets letting thresholds: in England (since April 2023) available for at least 140 days and actually let for 70 in the previous year; in Wales, 252 and 182. Fall short and the property moves back to council tax, potentially with a second-home premium, so keep evidence of nights let.
The basic split
A property is either in the council tax list or the rating list, not both. Which one depends on whether it is treated as domestic property or as self-catering accommodation available commercially.
The distinction used to be straightforward and generous: a property genuinely offered as a holiday let moved to business rates, and if its rateable value was low enough, small business rate relief could reduce the bill substantially or to nothing. That combination made the rating list a great deal cheaper than council tax for many small properties, and it is why the rules were tightened.
The letting thresholds
Since April 2023 in England, moving to and staying on the rating list as self-catering accommodation requires evidence of actual letting, not merely an intention to let.
In England the property must have been available for letting commercially for at least 140 days in the previous year and in the current year, and actually let commercially for at least 70 days in the previous year.
In Wales the thresholds are considerably higher: available for at least 252 days and actually let for at least 182 days in the previous year. A great many Welsh properties that previously qualified no longer do, which was the intention.
Scotland and Northern Ireland operate their own arrangements, and in Scotland this sits alongside the separate short-term let licensing regime rather than replacing it.
Falling short of the threshold does not simply mean a slightly different bill. It means moving back to council tax, potentially with a second-home or empty-property premium applied on top.
Why the premium changed the arithmetic
Councils in England can charge a premium on second homes, and many now do. In Wales the premium powers go considerably further, with some authorities applying very large uplifts.
The effect is that the gap between the two outcomes has widened sharply. A property comfortably over the letting threshold, with a rateable value low enough for small business rate relief, can pay very little. The same property a few nights short of the threshold can find itself on council tax with a premium applied — a swing large enough to change whether the property works at all.
This is why the letting threshold is worth treating as a planning number rather than something to check at the end of the year. If a property is going to be close to it, the nights matter.
What this means practically
Three things follow, and all of them are administrative rather than clever.
Keep records that evidence actual letting — booking dates, guest nights and income, by property, for each year. The evidence requirement is the thing that changed, and an operator who cannot produce it is in a weak position regardless of what actually happened.
Know your threshold before the year starts, and watch it during the year rather than after. A property that will land just under is worth pushing over deliberately.
And check the premium position with your specific council rather than assuming, because these powers are exercised locally and vary enormously between neighbouring authorities.
Where we fit
Our monthly statements show gross booking revenue and every deduction, per property, which is the record you need for the letting-threshold evidence. Nightly occupancy data sits behind that if you need it broken out.
We are not accountants and we do not give rating or tax advice. What we can do is tell you where a property is running against the threshold in time to do something about it, and give you the figures your accountant will ask for. If a property is going to fall short, that is a conversation worth having in autumn rather than in April.
A plain summary of a complex and changing area, not tax or rating advice. Thresholds and premiums change and vary by local authority. Confirm your position with the Valuation Office Agency, your council, or an accountant before relying on it.