Council tax, business rates and tax on Brighton short lets

If your Brighton short let is not your main home, the council charges double council tax on it. Since April 2025, second homes and furnished lets in Brighton and Hove pay a 100% premium. For many owners that is the biggest fixed cost after the mortgage, so it belongs in your sums before you list.

This guide explains the premium, when business rates apply instead, and how your income is taxed.

What is the second home premium in Brighton?

Brighton and Hove City Council says that from 1 April 2025, if a property is empty and furnished, a second home, or a furnished let, an extra council tax charge of 100% is payable. In plain terms, you pay twice the normal bill.

The premium applies from the day the property becomes empty. There are some exceptions set by the government, and the council asks owners to send evidence if they think one applies.

A short let that nobody lives in full time usually falls into this group, unless it is moved onto business rates.

When do business rates apply instead of council tax?

A holiday let can be assessed for business rates instead of council tax if it meets two tests. Under the rules for England, the property must be available to let for 140 days or more in the year, and actually let for 70 days or more.

The decision is made by the Valuation Office Agency, the government body that sets rateable values, not by the council. You tell the agency about your let, and it decides whether to move the property from council tax to business rates.

If the home moves to business rates, you pay rates based on its rateable value. Some smaller properties qualify for small business rate relief, which can reduce the bill a great deal. Check your own figures, because the right answer depends on the rateable value.

Is council tax or business rates 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 for part of the year may not pass the tests at all, and stays on council tax with the premium.

Two things are worth knowing:

• You cannot choose. If the home meets the tests, the agency decides.
• Keep records of every night the home was available and every night it was booked. You need them to show the tests were met.

What if the short let is your main home?

The premium is aimed at homes nobody lives in as their main home. If you live in the property and let it while you are away, it is not a second home, so the premium should not apply. If you are unsure which group your home falls into, ask the council tax team before you start letting.

Which records should you keep?

Whichever system you end up in, keep a simple record for each tax year: your booking calendar, the nights you blocked for your own use, platform payout statements and receipts for costs. These records answer the business rates tests and make your tax return far easier.

How is short-let income taxed?

The furnished holiday let tax rules ended on 6 April 2025. From the 2025 to 2026 tax year, all income from short-term holiday lets is taxed under the normal residential landlord rules. The old reliefs no longer apply.

You still pay income tax on your profit, after allowable costs such as cleaning, repairs, insurance, management fees and utilities you pay. Speak to an accountant about your own position, especially if you own the home with someone else or through a company.

How do the costs add up?

Before you decide to short-let a Brighton home, work out the yearly costs you pay whether or not a guest books:

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, including gas, electrical and a fire risk assessment.

Then set those against realistic earnings. The council's figures show strong demand, which we cover in Brighton's short-let market explained. Busy event weekends help too, as our Brighton events calendar shows.

Which rules affect your costs?

Cost is only half the picture. A full-time short let may also need planning permission, and the council has been reviewing how it controls short lets. An earlier council report estimated there were 4,000 to 5,000 short lets in the city. Read Airbnb rules in Brighton and Hove before you commit.

What will your home's costs be?

Double council tax changes the maths, so check it before you decide. Our Brighton short-let management team will show you likely earnings after fees, so you can compare them with your costs. Get your free valuation and see whether the numbers work for your home.

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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.