#2026/692England updates business rates rules for self-catering accommodation
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This Order changes when self-catering accommodation in England is treated as non-domestic property for business rates instead of domestic property for council tax. A property can qualify if it was available for commercial short-term letting for at least 140 days in the previous year and was actually let for at least 70 days. It also covers some mixed-use sites and larger groups of short-let properties. Owners and operators of holiday lets, serviced accommodation, estates, farms, and property portfolios should check whether their properties move into or remain within the business rates system from 24 July 2026.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Sets a previous-year test requiring at least 140 days of commercial availability and at least 70 days of actual short-term letting
- Includes self-catering accommodation that forms part of certain mixed-use non-domestic sites
- Includes groups of five or more qualifying short-let units that are not anyone’s sole or main residence
Obligations
What this law requires
From 24 July 2026, treat a building or self-contained part used as self-catering accommodation as potentially non-domestic property only if it was available for commercial short-term letting for at least 140 days in the relevant prior year and was actually let for short periods totalling at least 70 days.
For mixed-use sites, assess whether the self-catering accommodation is occupied together with non-domestic land used for another purpose and forms part of the same relevant hereditament, because it may be treated as non-domestic property under the amended rules.
For portfolios or sites comprising five or more buildings or self-contained parts, assess whether each unit meets the self-catering accommodation conditions and is not used as any person’s sole or main residence, because the group may be treated as a relevant non-domestic hereditament.
When determining whether separated properties form a relevant hereditament, include hereditaments separated only by a highway if they would otherwise comprise a single hereditament.