Council tax, the Clean Air Zone and costs for Bristol short lets

If your Bristol short let is not anyone's main home and stays on council tax, Bristol City Council charges double. Since 1 April 2025, second homes in the city pay a 100% premium. A busy short let can move to business rates instead, and there is one more Bristol cost most owners forget: the Clean Air Zone.

What is the second home premium?

The council treats a property as a second home when it is substantially furnished but nobody uses it as their only or main home. From 1 April 2025, the council charges a 100% premium on these homes, which means twice the normal council tax, unless an exception applies.

If you receive a bill with the premium and believe an exception applies, the council has an exception form. It will not process an application without the evidence it asks for.

When do business rates apply instead?

A holiday let can be assessed for business rates instead of council tax. GOV.UK explains that in England, a property is rated for business rates if it is available to let for 140 days or more in the year and actually let for 70 days or more. The Valuation Office Agency decides.

A busy Bristol short let usually passes these tests. Once it is on business rates, the council tax premium no longer applies, and some smaller properties qualify for small business rate relief. Keep records of every night the home was available and every night it was booked.

Does the Clean Air Zone affect short lets?

Bristol runs a Class D Clean Air Zone, one of the few in England that charges older private cars as well as commercial vehicles. Cars, taxis and vans that do not meet the emissions standard pay £9 per day to enter the zone, and trucks, buses and coaches pay £100. Petrol vehicles meeting Euro 4 and diesels meeting Euro 6 are exempt, as are electric vehicles.

This matters for short lets in two ways:

• Guests. A guest arriving in an older diesel car can be charged every day they drive in the zone. Mention the zone in your listing and arrival guide, and point guests to the GOV.UK vehicle checker.
• Your team. Cleaners and trades with older vans pay the charge too, and that cost can end up in their prices.

Unpaid charges lead to a penalty notice, so guests should pay within the time allowed.

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.

What other running costs are there?

Service charges. Many Bristol short lets are flats, with service charges for cleaning, lifts and building insurance. Budget for them, because they tend to rise.

Safety and insurance. Fire safety equipment, gas and electrical checks, and insurance that covers paying guests.

Cleaning and laundry. Busy summer weeks mean more changeovers, so plan cleaning capacity for fiesta and festival weekends.

Which records should you keep?

For each financial year, keep a record of every night the home was available, every night it was let, the price charged and any cleaning fees. These records show the business rates tests were met, support your tax return, and will be needed if a visitor levy is ever introduced in the West of England. Tell the council tax team whenever the way you use the home changes, so your bill matches how the home is really used.

How do the fixed costs add up?

1. Council tax with the premium, or business rates if you qualify.
2. Service charge and ground rent, if it is a flat.
3. Utilities, broadband and TV licence.
4. Insurance suitable for short stays.
5. Safety checks, cleaning and laundry.

Then set those against realistic earnings. Our Bristol events calendar shows where the strongest dates fall, and our guide to Airbnb rules in Bristol covers what to check first.

What does this mean for you?

• A Bristol second home on council tax pays double.
• A busy short let usually qualifies for business rates instead.
• Warn guests about the Clean Air Zone before they drive in.

Check the numbers for your home

Our Airbnb management in Bristol 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.

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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.