Business Rates against Council Tax

[Wings]

Six years ago I purchased a Cornwall property, with the intentions of once refurbishment works had been completed, then the property would become a holiday let. Although the property was purchased has a residential property, there were obvious signs, locks of every internal doors, that the property previously had been an unofficial holiday let.

Owing to me being 200 miles away and not on site, together with covid, builders and surveyors issues, the property's refurbishment works still remain to be completed. Just recently, like several posters on Ph, I have received notification that the council tax will be increased to 200% on April 2025.

There was a recent Daily Telegraph article on "How to avoid second home council tax" (link below), that suggested holiday let owners register their properties as businesses, rather than council tax. The article also mentioned small business rate relief for properties with a rateable value less than £15k.

Whilst I have the problem of not presently being able to let the property, although I could probably this coming year let to close family members, is there any way I can obtain a calculation of what the business rate would be for the property, and the difference in paying the 200% council tax.


https://www.telegraph.co.uk/money/property/buy-to-...

[surveyor]

You can filter to Special Catagory 131 Holiday Homes and by Charging Authority on the VOA website.

Then check out the property on rightmove / streetview to compare to yours.

[softtop]

I am 99% sure it will be rated under 10,000 and therefore be free. What Cornwall council ask for is the agency you use and how many weeks you are achieving in booking and availability. They do like their evidence.

[Puzzles]

I wondered how easy it would be for them to up the valuation in a few years when people have switched over.

[soxboy]

To be eligible for business rates you will need to demonstrate that the property is available to let for at least 140 nights per year in total and that it has actually let for at least 70 nights.

To establish the liability, that’s based on a flat rate per occupant - say 6 persons @£500 = a Rateable Value of £3,000. Have a look online at other holiday lets in the area and see what the rate is.