Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • nick mac
    • By nick mac 1st Aug 19, 11:51 AM
    • 13Posts
    • 0Thanks
    nick mac
    Council tax and airbnb
    • #1
    • 1st Aug 19, 11:51 AM
    Council tax and airbnb 1st Aug 19 at 11:51 AM
    Hi all, quick question on council tax.

    I know that, when a property is rented, the responsibility to pay council tax normally falls on the tenant. But what about when the property is rented via short lets (e.g. Airbnb, Homeaway, etc)? Does that put a liability on the landlord to pay for the council tax - even if not living in the property at all?

    If that's the case - is something like the "empty home discount" applicable? Technically the home is not empty for most of the year, but the landlord paying the tax is not living there at all either.

    Thanks!
Page 1
    • foxy-stoat
    • By foxy-stoat 1st Aug 19, 12:00 PM
    • 5,731 Posts
    • 3,550 Thanks
    foxy-stoat
    • #2
    • 1st Aug 19, 12:00 PM
    • #2
    • 1st Aug 19, 12:00 PM
    If your letting your property for less than 6 months then its generally classed as a short term let, Landlord would be responsible for utilities and council tax. You wont expect a tenant to sign up to agreements with TV, water, waste, gas, electric, council tax for a let of less than 6 months.
    • Kevie192
    • By Kevie192 1st Aug 19, 12:03 PM
    • 1,158 Posts
    • 2,574 Thanks
    Kevie192
    • #3
    • 1st Aug 19, 12:03 PM
    • #3
    • 1st Aug 19, 12:03 PM
    Do you not have access to Google at all, Nick?

    30secs tells me that you're liable to pay business rates rather than council tax.
    • danlewi2
    • By danlewi2 1st Aug 19, 12:16 PM
    • 175 Posts
    • 214 Thanks
    danlewi2
    • #4
    • 1st Aug 19, 12:16 PM
    • #4
    • 1st Aug 19, 12:16 PM
    Empty home - usually results in the council tax being doubled.
    • need an answer
    • By need an answer 1st Aug 19, 12:31 PM
    • 2,550 Posts
    • 3,212 Thanks
    need an answer
    • #5
    • 1st Aug 19, 12:31 PM
    • #5
    • 1st Aug 19, 12:31 PM
    The thing is even if empty home discount did apply...its not going to be classed as an empty home as it will be furnished.

    Most councils got rid of any form of useable discount several years ago so the utility bill will be the responsibility of the owner.

    You will need to be careful that its not classed as a holiday home as these can sometimes attract a 100% increase in payments

    Check with you relevant council for its individual policy as it does vary substantially dependant on council.
    in S T 1 F 1
    out S 2 T F 4

    2017-32 2018 -33 2019 -21
    • nick mac
    • By nick mac 1st Aug 19, 1:36 PM
    • 13 Posts
    • 0 Thanks
    nick mac
    • #6
    • 1st Aug 19, 1:36 PM
    • #6
    • 1st Aug 19, 1:36 PM
    Got it, thanks all. I'll guess I'll pay my council tax - it's not one where I want to take any risks! It decreases the attractiveness of short lets, and I might go long in the future, but we'll see.

    Kevie192 - business rates only kick in if you rent for 90+ days (or at least that's my understanding). But that's almost impossible as it requires planning permission for change of use - which councils never give... Next time spend more than 30sec on google!
    • JMA74
    • By JMA74 1st Aug 19, 1:42 PM
    • 1,090 Posts
    • 786 Thanks
    JMA74
    • #7
    • 1st Aug 19, 1:42 PM
    • #7
    • 1st Aug 19, 1:42 PM
    Found this:

    https://www.thesapodcast.com/18-business-rates/

    Generally, Business Rates will be lower than Council Tax and in most AirBnB businesses are zero! This is because "small business rates relief" is usually allowable if you qualify as an FHL (Furnished Holiday Let). If the relief applies and the "Rateable Value" is less than 15,000, the business is "zero rated". Most AirBnB properties have a Rateable Value far less than this. For example, a flat in central Manchester with accommodation for 6 is only 3000 and so Business Rates will be zero. The same flat in central London will probably exceed the threshold, but even then, there is tapered relief between 18,000 and 15000 from 0-100%. My 3 bed, 6 person cottage in Anglesey is 2125 and it is zero rated. I pay no Council Tax and no Business Rates.

    If the business does not qualify for small business relief, then the Rateable Value is multiplied by 49.3p to calculate the amount due per annum. If it does qualify as a small business and the RV is above 15000, the rate is 48p (2018-19).

    To get your Rateable Value, you have to apply to the Valuation Office Agency
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • nick mac
    • By nick mac 1st Aug 19, 3:34 PM
    • 13 Posts
    • 0 Thanks
    nick mac
    • #8
    • 1st Aug 19, 3:34 PM
    • #8
    • 1st Aug 19, 3:34 PM
    Generally, Business Rates will be lower than Council Tax and in most AirBnB businesses are zero! This is because "small business rates relief" is usually allowable if you qualify as an FHL (Furnished Holiday Let). If the relief applies and the "Rateable Value" is less than 15,000, the business is "zero rated". Most AirBnB properties have a Rateable Value far less than this. For example, a flat in central Manchester with accommodation for 6 is only 3000 and so Business Rates will be zero. The same flat in central London will probably exceed the threshold, but even then, there is tapered relief between 18,000 and 15000 from 0-100%. My 3 bed, 6 person cottage in Anglesey is 2125 and it is zero rated. I pay no Council Tax and no Business Rates.

    If the business does not qualify for small business relief, then the Rateable Value is multiplied by 49.3p to calculate the amount due per annum. If it does qualify as a small business and the RV is above 15000, the rate is 48p (2018-19).

    To get your Rateable Value, you have to apply to the Valuation Office Agency
    Originally posted by JMA74
    This is interesting! I think it would qualify as a FHL as it satisfies the 3 tests (pattern of occupation, availability and letting). So, I need to check to make sure that the rateable value is indeed below 15k and that I am eligible for the small business relief - I will reach out to the VOA.

    Do you need to do something specific to both register the FHL and claim the small business relief - or can you do it all through your end of year tax return?
    • JMA74
    • By JMA74 1st Aug 19, 4:19 PM
    • 1,090 Posts
    • 786 Thanks
    JMA74
    • #9
    • 1st Aug 19, 4:19 PM
    • #9
    • 1st Aug 19, 4:19 PM
    This is interesting! I think it would qualify as a FHL as it satisfies the 3 tests (pattern of occupation, availability and letting). So, I need to check to make sure that the rateable value is indeed below 15k and that I am eligible for the small business relief - I will reach out to the VOA.

    Do you need to do something specific to both register the FHL and claim the small business relief - or can you do it all through your end of year tax return?
    Originally posted by nick mac
    https://www.gov.uk/introduction-to-business-rates/self-catering-and-holiday-let-accommodation

    No idea, I would imagine it similar to council tax where they charge the full whack and then apply discounts at source. I just found this on google so take it as unverified information, I've put the link to .gov which is obviously a bit more legit.

    There will be a knock on effect though where you will presumably lose a lot of the services that council tax pays for. Like waste collection as an example
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • nick mac
    • By nick mac 1st Aug 19, 4:22 PM
    • 13 Posts
    • 0 Thanks
    nick mac
    Got it, sounds quite complicated! I wonder how many people with short term rental properties are aware of this and actually do it all...
    • lincroft1710
    • By lincroft1710 1st Aug 19, 6:46 PM
    • 12,501 Posts
    • 11,146 Thanks
    lincroft1710
    This is interesting! I think it would qualify as a FHL as it satisfies the 3 tests (pattern of occupation, availability and letting). So, I need to check to make sure that the rateable value is indeed below 15k and that I am eligible for the small business relief - I will reach out to the VOA.

    Do you need to do something specific to both register the FHL and claim the small business relief - or can you do it all through your end of year tax return?
    Originally posted by nick mac
    Your tax return has nothing to do with Council Tax or Non Domestic ("business") Rates, these are dealt with by the council.
    • scotdevlin
    • By scotdevlin 15th Jan 20, 6:42 AM
    • 1 Posts
    • 0 Thanks
    scotdevlin
    less than 90
    But would you still not qualify as you let the property out for less than 90 days per year?
    I am asking because I am in the same situation.
    I will likely let for less than 90 days per year.
    any advice from anyone on my situation is appreciated
    • davidmcn
    • By davidmcn 15th Jan 20, 8:16 AM
    • 14,426 Posts
    • 16,876 Thanks
    davidmcn
    But would you still not qualify as you let the property out for less than 90 days per year?
    Originally posted by scotdevlin
    No - see the answers above. Nobody with an AirBnB is messing around with different council tax statuses between lets (and moving all the furniture in and out).
    • 00ec25
    • By 00ec25 15th Jan 20, 1:50 PM
    • 8,979 Posts
    • 8,904 Thanks
    00ec25
    Found this:

    https://www.thesapodcast.com/18-business-rates/

    Generally, Business Rates will be lower than Council Tax and in most AirBnB businesses are zero! This is because "small business rates relief" is usually allowable if you qualify as an FHL (Furnished Holiday Let). If the relief applies and the "Rateable Value" is less than 15,000, the business is "zero rated". Most AirBnB properties have a Rateable Value far less than this. For example, a flat in central Manchester with accommodation for 6 is only 3000 and so Business Rates will be zero. The same flat in central London will probably exceed the threshold, but even then, there is tapered relief between 18,000 and 15000 from 0-100%. My 3 bed, 6 person cottage in Anglesey is 2125 and it is zero rated. I pay no Council Tax and no Business Rates.

    If the business does not qualify for small business relief, then the Rateable Value is multiplied by 49.3p to calculate the amount due per annum. If it does qualify as a small business and the RV is above 15000, the rate is 48p (2018-19).

    To get your Rateable Value, you have to apply to the Valuation Office Agency
    Originally posted by JMA74
    you should have put the emphasis on it meeting the test of being FHL before worrying about whether CT or BR apply


    just because you get money thru Airbnb does not automatically make it an FHL
    • CIS
    • By CIS 15th Jan 20, 1:58 PM
    • 11,480 Posts
    • 6,731 Thanks
    CIS
    If your letting your property for less than 6 months then its generally classed as a short term let, Landlord would be responsible for utilities and council tax. You wont expect a tenant to sign up to agreements with TV, water, waste, gas, electric, council tax for a let of less than 6 months.

    For clarification - That's correct from the simple point of council tax liability where a person is not resident in the property - if the person is resident, even if it was just for one day, then they can fall liable for that day.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

31Posts Today

4,465Users online

Martin's Twitter