Council tax, business rates and costs for Bath short lets

If your Bath short let is not anyone's main home, Bath and North East Somerset Council charges double council tax on it. Since 1 April 2025, second homes in the district pay a 100% premium on top of the normal bill. For many owners, that is the biggest fixed cost after the mortgage.

Here is how the premium works, when business rates apply instead, and how your income is taxed.

What is Bath's second home premium?

The council says a "second home" is a furnished property for personal use that is not your main residence, or simply one that is unoccupied but furnished. From 1 April 2025, the council charges an additional 100% premium on second homes, approved at a full council meeting on 30 November 2023.

In plain terms, you pay twice the normal council tax. The council's report at the time counted 858 properties classed as second homes in the district.

What are the exceptions?

There are exceptions set by the government. The council lists them, including properties being actively marketed for sale or let. Other exceptions cover annexes, job-related homes and homes where probate has recently been granted.

A home used for short lets does not usually fit any of these, so expect the premium unless the home moves onto business rates.

When do business rates apply instead?

A holiday let can be assessed for business rates instead of council tax. The council explains that since 1 April 2023, a self-catering property must be available to let commercially for 140 days or more and actually let for 70 days or more to stay eligible for business rates. If it does not meet those rules, it becomes liable for council tax.

The council also says that all new self-catering accommodation must start on the council tax list for at least the first 140 days, and only moves to business rates once the rules have been met. The decision on business rates is made by the Valuation Office Agency.

Some smaller properties qualify for small business rate relief, which can reduce the bill a great deal. Check your own rateable value, and check again each year, because relief rules and rateable values can change.

Which is cheaper?

There is no single answer. A busy, full-time short let that easily passes the 140 and 70-day tests may pay less on business rates, especially with relief. A home let only now and then may not pass the tests, and stays on council tax with the premium.

Keep records of every night the home was available and every night it was booked. You need them to show the tests were met. Tell the council tax team whenever the way you use the home changes, so your bill matches how the home is really used.

How is short-let income taxed?

The furnished holiday let tax regime ended on 6 April 2025. Short-let income is now taxed under the normal residential landlord rules, after allowable costs such as cleaning, repairs, insurance and management fees. Speak to an accountant about your own position.

Which costs are higher in Bath?

Listed building work. Many Bath homes are listed. Safety work that affects historic fabric can need listed building consent and specialist trades, which cost more than standard work. See Airbnb rules in Bath.

Vans in the Clean Air Zone. Bath's Clean Air Zone does not charge private cars, but it does charge vans, taxis and other commercial vehicles that do not meet emission standards. If your cleaner or maintenance contractor drives an older van into the zone, that charge can end up in their price.

Parking for your team. Visitor permits in Bath's residents' parking zones cannot be used for letting activity, so cleaners and contractors may need paid parking. See parking, the Clean Air Zone and guest arrivals in Bath.

How do the fixed costs add up?

1. Council tax with the second home premium, or business rates if you qualify.
2. Utilities, broadband and TV licence.
3. Insurance suitable for short stays.
4. Safety checks and any consent-related work in a listed building.
5. Cleaning, laundry and parking for the people who look after your home.

Then set those against realistic earnings. Our Bath events calendar shows where the strongest dates fall.

What does this mean for you?

• Expect double council tax on a Bath second home unless it qualifies for business rates.
• Keep records of availability and bookings from day one.
• Budget for Bath-specific costs: listed building work, parking and Clean Air Zone charges for trades.

Check the numbers for your home

Our Airbnb management in Bath team will show you likely earnings after fees, so you can weigh them against your costs. Get your free valuation and see whether the numbers work for your home.

Get my free valuation

This is general information, not legal or tax advice. It is our own interpretation of the rules and figures as they stand on the date shown above, and they can change. Speak to a qualified solicitor or accountant before you act on anything here.