Business rates or council tax? The 140/70-day rule for holiday lets in Bristol and Bath

In England, a holiday let pays business rates instead of council tax only if it was available to let for at least 140 nights and actually let for at least 70 nights in the last 12 months. If it doesn't meet that test, it stays in council tax. In Bristol and Bath, a furnished home that's nobody's main residence can be charged double council tax as a second home.

What is the 140/70-day rule?

GOV.UK says your property is valued for business rates as self-catering accommodation if all of these apply:

• you let it commercially for short periods of 28 nights or less
• it was available to let commercially for at least 140 nights in the last 12 months
• it was actually let for at least 70 nights in the last 12 months
• you plan to make it available for at least 140 nights in the next 12 months

To put that in context, 140 nights is a little under 40% of the year, and 70 nights is about one night in five.

Which nights count?

This is where owners get caught out. You can't include:

• nights you used the property yourself, including letting it to friends or family at a discounted rate
• nights it was closed for repair or refurbishment
• future bookings that haven't happened yet

Stays of more than 28 nights don't count towards the 70 nights let. They can count towards the 140 nights available, but only if the property could have been booked for 28 nights or less.

What happens if your holiday let qualifies?

You apply to the Valuation Office using HMRC's form, one per property. The form is emailed to selfcatering@hmrc.gov.uk with the subject "Self-catering application — England", or posted to the Valuation Officer in Durham.

The Valuation Office then sets a rateable value. For a single holiday let, it starts from the trade the property is expected to make, based on its income and expenditure, type, location and facilities, and works it out per bed space.

Qualifying doesn't always mean a big bill. If your business only uses one property and its rateable value is £12,000 or less, small business rate relief means you pay nothing. Between £12,001 and £15,000, the relief tapers from 100% to 0%. Ask your council what applies to you.

Once you're in business rates, you're sent a form each year to confirm you still meet the test. If you don't, you're moved back to council tax.

What if it doesn't qualify? The Bristol and Bath second homes premium

Then you pay council tax. GOV.UK describes a furnished holiday home that isn't anyone's main home as a "second home", and councils can charge up to twice the normal council tax on second homes. Your council decides whether your property counts.

Both of our English cities do:

• Bristol: Bristol City Council has charged a 100% premium on second homes since 1 April 2025, which it describes as twice the normal charge.
• Bath: Bath and North East Somerset Council has charged an additional 100% premium on second homes since 1 April 2025.

Here's what that means for a Band D home in Bristol in 2026 to 2027:

There are a few exceptions, such as annexes used as part of the main home and properties with planning restrictions that stop year-round occupation. Ask your council if you think one applies.

What changed in 2026?

From 24 July 2026, two kinds of holiday let no longer need to pass the 140-night and 70-night tests from the previous year. One is 5 or more holiday lets in the same property. The other is a holiday let that shares land with another business run by the same owner. In both cases the lets can't be anyone's main home, and you still need to plan to make each one available for at least 140 days over the next 12 months.

If you own several properties, small business rate relief has also changed. If you got a second property on or after 27 November 2025, you keep relief on your main property for 36 months, up from 12.

For most single Airbnbs in Bristol or Bath, the 140/70 test hasn't changed.

What should you check now?

1. Count the nights your property was genuinely available and actually let over the last 12 months.
2. Take out personal use, discounted friends-and-family stays, repair closures and stays of over 28 nights.
3. If you pass, apply to the Valuation Office and ask your council about small business rate relief.
4. If you don't, check your council tax bill for the second homes premium.

England is also bringing in a national registration scheme for short-term lets. GOV.UK says it's expected to begin in March 2027 and isn't in force yet.

Want help with a short let in Bristol or Bath?

Occupaid offers short-let management in Bristol, Bath and Cardiff, with no long-term lock-in. See our Bristol Airbnb management page or our Bath Airbnb management page, or book a 30-minute call.