Business rate for Holiday Cottage

[MC0705]

Help!
I have been running a holiday let for nearly 3 years, averaging only 20-22 weeks rental per year. I have just discovered that I should have been paying Business rate instead of Council Tax for a second home. We do use the property when it is not booked, to spend some weekends, but I have not deliberatly limited the numbers of days it is available for rental. Am I the only one in this situation? has any one out there gone through this change of status? Any word of advise will be welcome.
8-[

[Raincliffe1]

As far as I understood it, you are not liable for business rates if the property is let for less than 26 weeks per year (unless there has been a very recent change this year in legislation). I think the charge stems from the fact that this is your second property and not a flat within your main and only dwelling.

Katherine

[boshers]

The Valuation Office Agency provides guidance on their website:-

http://www.voa.gov.uk/publications/public_fact_sheets/holiday_cottages_guide.html

Appologies if you have already read it. I imagine their are a lot of holiday let owners in your position although my understanding is that the VOA are proposing to take a tougher stance with effect from the 2010 revaluation. I understand a number of bodies representing self-catering accomodation owners are in the process of lobbying governemnt over this subject. Watch this space as they say.

[joyful]

Arn't business rates cheaper - thus worth having. It can't change the overall use on selling of the property as it was intially residential (presuming this is just a dwelling you have decided to do as a holiday let). I am on the brink of doing a cottage into a self catering and was thinking business rates would be a great saving in fact? Any more info anyone?

[dazed]

Given that the tax rules change next year to so that holiday rentals are no longer treated as businesses but treated the same as property that is let for longer term, does that mean that they are liable to Council Tax, rather than business rates - like the longer term rentals?

As Council Tax is levied on the occupier rather than the owner, does that mean that we need to supply the local council with details of guests so that they are able to bill them for the time that they are in occupation?

[joyful]

Business rates should work out to be cheaper than C. Tax - and small businesses currently get a 50% discount on them if you are under a certain rateable value. You must fill in the form to get the reduction tho!

[rhydtalog]

The Valuation Office Agency provides guidance on their website:-

http://www.voa.gov.uk/publications/public_fact_sheets/holiday_cottages_guide.html

Appologies if you have already read it. I imagine their are a lot of holiday let owners in your position although my understanding is that the VOA are proposing to take a tougher stance with effect from the 2010 revaluation. I understand a number of bodies representing self-catering accomodation owners are in the process of lobbying governemnt over this subject. Watch this space as they say.

we have just bought a site we have 2 self catering loges and planning for a further 6 the vo office came today and said they cant be biss rates but domestic rates till we get 70 nights out of the 140 for each unit to be put on biss rates the site was bought as commercial letting accomadation an was checked by council as to usege so and contacted vo office as rates value so at the moment we cant put any new units on site as cant afford council tax also if you look on vo web site it still clearly states self catering units avail for 140 nights or more require biss rates and dont have to be alraedy booked but availible they dont seem to know them selves

[wasco]

The 70 day letting rule applies in Wales, but not in England, where the rule is if your properties are available for 140 days or more, then they must be business rated regardless as to whether or not they're let.

According to the VOA (27-Jul-10), if the proposed changes to the FHL rules go through they "would not affect the approach for rating which is governed by s66 of the Local Government Finance Act, 1988. It would be up to Communities and Local Government/WAG to change s66 to correspond with this if they consider it to be required".

[wasco]

Help!
I have been running a holiday let for nearly 3 years, averaging only 20-22 weeks rental per year. I have just discovered that I should have been paying Business rate instead of Council Tax for a second home. We do use the property when it is not booked, to spend some weekends, but I have not deliberatly limited the numbers of days it is available for rental. Am I the only one in this situation? has any one out there gone through this change of status? Any word of advise will be welcome.
8-[

If your holiday let is in England and is available for 140 days or more, then you should have been paying Business Rates. For more information on Business Rates go to www.fonsca.org.uk (http://www.fonsca.org.uk) - The Federation of National Self Catering Associations.