Self‑catering and holiday let accommodation are liable for business rates instead of Council Tax, if they meet the government’s strict thresholds.

Since 1 April 2023, your property is eligible for business rates if:

• it was available to let commercially, with the intention of making a profit, for at least 140 nights in a 12‑month period
• it was actually let commercially for at least 70 nights in the same 12‑month period, not including stays of more than 28 nights
• you intend to make it available for at least 140 nights in the next 12 months

If all of the above the criteria are not met, the property will be liable for Council Tax instead of business rates. Read the government’s guidance about business rates for self-catering and holiday let accommodation.

Guidance for property owners

If you currently pay Council Tax but now meet the business rates criteria, apply for business rates for a self‑catering property.

If you already pay business rates, the government might contact you to confirm letting information. If they write to you, you must reply within 56 days. If you do not, they will charge you Council Tax for the property even if you meet the business rates criteria. Find out more about proving letting information for self-catering holiday lets.

If the property becomes someone’s sole or main residence, contact us at revenues@cambridge.gov.uk.

Relief and how your bill is calculated

The government sets a rateable value based on the property’s type, size, location, quality and likely income from letting. Your bill is calculated by multiplying the rateable value by the government’s multiplier, then applying any reliefs.

If you only let one property and its rateable value is under £15,000, you might be eligible for Small Business Rate Relief.

Read our guide to how business rates are calculated, including transitional arrangements.

Local Council Tax premiums on second homes

Since April 2025, we apply:

• a 100% Council Tax premium to furnished second homes that are nobody’s main residence
• a 100% premium to homes that have been empty and unfurnished for more than 12 months