For most holiday let owners, business rates work out cheaper — often free. Properties with a rateable value under £12,000 qualify for 100% Small Business Rate Relief (SBRR) and pay nothing at all. Even properties up to £15,000 receive tapered relief.

Council tax on a comparable property is frequently higher, particularly for larger or higher-value properties. However, if your property does not qualify for SBRR and has a higher rateable value, it is worth comparing: multiply your rateable value by the current non-domestic rating multiplier (available at gov.uk/find-business-rates) and compare that figure against your council tax band charge.

Your local council can confirm which regime applies to your property and what reliefs are available.