Council tax and costs for Chester short lets

As of September 2026, if your Chester short let is not anyone's main home and stays on council tax, you pay double. Cheshire West and Chester Council has charged a 100% second home premium since 1 April 2025. A busy short let can move to business rates instead.

What is the second home premium?

The council says that from 1 April 2025, all properties classed as a second home are subject to a 100% council tax premium as well as the standard charge. A second home is one where nobody lives as their main home and the property is substantially furnished. Holiday homes are one of the examples the council gives.

If your second home has become let or sold, or is now your main home, tell the council so your bill is correct.

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. Some smaller properties then qualify for small business rate relief.

A central Chester home let through the race season and weekends usually passes these tests. Keep records of every night available and every night booked.

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 Chester?

Listed building work. Homes inside the walls are often old or listed, so repairs and safety work can cost more and need specialist trades.

Race-day wear. Group bookings mean more wear, breakages and cleaning. Use platform damage protection and a clear house rules agreement.

Parking. Central parking is limited and expensive on race days. If your home has a space, say so in your listing.

Which records should you keep?

For each financial year, keep a record of every night the home was available, every night it was let, and the price charged. These records support business rates, your tax return, and any future visitor levy.

Is a visitor levy coming?

The government has announced powers for mayors in England to introduce an overnight visitor levy. As of September 2026, nothing is in force in Chester. Keeping the accommodation price separate from cleaning fees in your records means you will be ready if one arrives.

How do the fixed costs add up?

1. Council tax with the premium, or business rates if you qualify.
2. Utilities, broadband and TV licence.
3. Insurance suitable for short stays.
4. Safety checks, cleaning and laundry.

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

What does this mean for you?

• As of September 2026, a Chester second home on council tax pays double.
• A busy short let usually qualifies for business rates instead.
• Budget for race-day wear and listed building costs.

Check the numbers for your home

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

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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.