UK Short-Let RulesTracker
Menu

England second homes council tax premium: holiday lets

In short

From MHCLG guidance (updated 1 May 2026) and GOV.UK. Not tax advice.

When the English second homes premium hits a holiday let, when it does not, and the exceptions, with official sources.

Who it applies to

Holiday lets: council tax or business rates?

If your holiday let meets the business rates test (available at least 140 nights and actually let at least 70 nights in the last 12 months, and you plan to offer 140 nights in the next 12), it is valued for business rates instead of council tax, so the premium does not apply. A single let with a rateable value under £15,000 may get small business rate relief. Business rates are a separate tax, so check that the move is right for you. The Valuation Office Agency decides whether a property is assessed for business rates.

Mandatory exceptions (from 1 April 2025)

Councils cannot switch these off. They only remove the premium, not the normal council tax.

ClassWho it covers
Class EHome that would be someone's main home if they were not living in job-related armed forces accommodation
Class FAnnex forming part of, or treated as part of, the main home
Class GActively marketed for sale (up to 12 months)
Class HActively marketed for let (up to 12 months)
Class IUnoccupied home where probate was recently granted (up to 12 months from the grant)
Class JJob-related home (second homes only)
Class KOccupied caravan pitch or boat mooring (second homes only)
Class LSeasonal home where year-round living is banned, use is limited to holiday accommodation, or a planning condition stops anyone staying more than 28 days in a row (second homes only)

Class M (major repairs, 12 months) applies to long-term empty homes only. Councils can also add their own exceptions or discounts under section 13A of the Local Government Finance Act 1992.

What to check for your let

Council pages with premium details

Holiday let hotspots: North Devon and Dorset both charge the full 100% premium, so a second home pays double council tax unless it qualifies for business rates or an exception.

All England rules · All councils

Wales has its own council tax premiums and a different 182-day business rates test. See Wales rules. For income tax, see holiday let tax after the FHL abolition.

Get an email when short-let rules change in England

We track the English second homes council tax premium, the 140/70-night business rates test, council premium start dates and other England short-let rules against official sources, and email you when one changes.

Next England dates we're watching:

Pick your council for alerts about it, or keep All of England. Plus one short weekly UK "what changed" email. Free, no spam, unsubscribe any time.

Common questions

What is the second homes council tax premium in England?

From 1 April 2025 councils in England can charge up to 100% extra council tax on second homes, so the bill can be up to double. For council tax, a second home is a property that is substantially furnished but is nobody's sole or main residence. Each council decides whether to charge it and at what rate.

Does the premium apply to my holiday let?

It applies to a furnished holiday let that is still in the council tax system and is nobody's main home. If your holiday let is valued for business rates instead, because it was available for at least 140 nights and actually let for at least 70 nights in the last 12 months and you plan to offer it for 140 nights in the next 12, it pays business rates and the council tax premium does not apply.

How much notice does a council have to give?

A council must make its first decision to charge a second homes premium at least one year before the start of the financial year it applies to. That is why most councils that charge it started on 1 April 2025.

What are the exceptions?

The government has set mandatory exceptions that councils cannot switch off. For second homes they are Classes E to L, covering armed forces homes, annexes used as part of the main home, homes marketed for sale or let (12 months), recent probate (12 months), job-related homes, occupied caravan pitches and boat moorings, and seasonal or holiday-only homes restricted by planning.

Can a council give a discount or extra exceptions?

Yes. Councils can add their own exceptions or offer discretionary reductions under section 13A of the Local Government Finance Act 1992. Ask your council what local policy it has.

What if I think the premium has been charged wrongly?

Contact your council first, as it decides whether a home is a second home and whether an exception applies. If you are not happy with its answer, you may be able to appeal to the Valuation Tribunal.

Does the "marketed for let" exception cover advertising as a holiday let?

The guidance says the sale and let exceptions are meant for owners genuinely trying to bring a home back into use as someone's main residence. We have not seen it say that holiday-let advertising counts, so check with your council before relying on it.

Official sources

Show all official sources (3)

Not tax advice. Checked 2026-10-29. Your council decides whether a premium or exception applies, so check with them before acting.

Get free rule-change alerts for your council

Pick your council. We email you when its short-let rules change (licensing, planning, levy, fees), plus one short weekly "what changed" email. Free. Unsubscribe any time.

Was this page helpful?

We only use this to improve the site. Privacy