If your Liverpool short let is not anyone's main home and stays on council tax, Liverpool City Council charges twice the normal council tax. A busy short let can move to business rates instead. Liverpool also has a £2 overnight charge on many hotel stays, but it almost certainly does not apply to your flat.
What could your home earn?
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Key takeaways
- If your Liverpool short let isn't anyone's main home, Liverpool City Council charges twice the normal council tax.
- A busy short let can move to business rates instead.
- Liverpool's £2 ABID charge applies to many hotel stays, but almost certainly not to your short let.
- A wider visitor levy may follow.
- Council tax is often the biggest fixed cost after the mortgage.
Contents
- What is the second home premium?
- When do business rates apply instead?
- What is the £2 Liverpool ABID Charge?
- Is a wider visitor levy coming?
- How is short-let income taxed?
- What other running costs are there?
- How do the fixed costs add up?
- What does this mean for you?
- Check the numbers for your home
- Frequently asked questions
What is the second home premium?
A second home, for council tax, is a furnished property that is nobody's only or main home. Liverpool charges double council tax on these homes, as many English councils now do. If you think an exception applies, such as a home genuinely on the market for sale or a long-term let, ask the council, and keep paying your bills while you wait.
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 city-centre flat 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 available and every night booked.
What is the £2 Liverpool ABID Charge?
Liverpool's Accommodation Business Improvement District adds a £2 per room or unit per night charge to guests' bills in its area. It is run by the hotel industry, not the council, and the money goes into events and marketing that bring visitors to the city.
The levy applies to venues in the scheme with a rateable value above £45,000, meaning hotels and larger serviced apartment operators. A typical Airbnb flat is nowhere near that, and many short lets are on council tax rather than business rates. So you almost certainly do not need to add the £2 to your bookings.
Is a wider visitor levy coming?
In September 2026, the government announced that mayors and local leaders will be handed the power to introduce an overnight visitor levy, charged as a percentage of the accommodation cost. A bill is still needed, and each area decides whether to use the power. The Liverpool City Region has an elected mayor, so keep booking records that separate the accommodation price from cleaning fees and extras, in case a levy arrives.
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. Most Liverpool short lets are flats, with service charges for concierge, lifts and building insurance. Budget for rises.
Damage and deposits. Group bookings on race and match weekends carry more risk of damage. Use platform damage protection and a clear house rules agreement.
Cleaning capacity. Busy weekends mean back-to-back changeovers. Book cleaners early for the Grand National and big fixtures.
How do the fixed costs add up?
- Council tax with the premium, or business rates if you qualify.
- Service charge and ground rent.
- Utilities, broadband and TV licence.
- Insurance suitable for short stays.
- Safety checks, cleaning and laundry.
Then set those against realistic earnings. Our Liverpool events calendar shows where the strongest dates fall, and our guide to Airbnb rules in Liverpool covers what to check first.
What does this mean for you?
- A Liverpool second home on council tax pays double.
- A busy short let usually qualifies for business rates instead.
- The £2 ABID charge is for hotels and large operators, not typical flats.
Check the numbers for your home
Our Airbnb management in Liverpool 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.
Frequently asked questions
Do Liverpool short lets pay double council tax?
Yes, if the home isn't anyone's main home and stays on council tax.
Does the £2 Liverpool ABID Charge apply to short lets?
It almost certainly doesn't apply to your short let.
Is a wider visitor levy coming?
One may follow, so keep it in view.
Can a Liverpool short let pay business rates?
Yes, if it meets the government's tests for availability and letting.
How is short-let income taxed?
Since April 2025, much like rent from a normal tenant. Speak to an accountant about your own position.
Related guides
Sources
- Liverpool City Council: Empty properties and second homes
- GOV.UK: Letting out a self-catering holiday home in England
- Liverpool BID Company: Liverpool ABID Charge
- Liverpool BID Company: Liverpool could have a Liverpool ABID Charge by June 2025
- GOV.UK: Local leaders handed powers to drive investment in communities (overnight visitor levy)
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.