As of September 2026, if your Reading short let is not anyone's main home and stays on council tax, you pay double. Reading Borough Council agreed a second homes premium that took effect in 2025/26. A busy short let can move to business rates instead.
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Key takeaways
- If your Reading short let isn't anyone's main home, you pay double council tax.
- Reading Borough Council's second homes premium took effect in 2025/26.
- A busy short let can move to business rates instead.
- Service charges, business-standard furnishing and parking can push Reading costs up.
- A visitor levy may follow, so keep it in view.
Contents
What is the second home premium?
In January 2024, Reading's councillors voted for council tax premium changes, with the second homes premium kicking in for 2025/26. It applies to homes that are not anyone's sole or main residence and are substantially furnished, and doubles the council tax bill. The local report at the time said more than 2,000 homes in the town were empty or used as someone's second home.
Check your own bill, and tell the council if your home's use changes so the charge 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. 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 Reading?
Service charges. Many Reading short lets are flats in newer blocks, with service charges for concierge, lifts and building insurance. Budget for rises.
Business-standard furnishing. Business guests expect a desk, a good chair and fast Wi-Fi. Budget for these before you list.
Parking. Town-centre parking is expensive. A flat with a space is worth more to contractors, so say so in your listing.
Is a visitor levy coming?
The government has announced powers for mayors and local leaders in England to introduce an overnight visitor levy. As of September 2026, nothing is in force in Reading. Keep booking records that separate the accommodation price from cleaning fees, in case a levy arrives.
What does this mean for you?
- As of September 2026, a Reading second home on council tax pays double.
- A busy business-focused short let usually qualifies for business rates instead.
- Budget for business-standard furnishing and parking.
Our Reading events calendar shows where demand comes from, and Airbnb rules in Reading covers what to check first.
Check the numbers for your home
Our Airbnb management in Reading team will show you likely earnings after fees. Get your free valuation to see whether the numbers work.
Frequently asked questions
Do Reading short lets pay double council tax?
Yes, if the home isn't anyone's main home and stays on council tax. The premium took effect in 2025/26.
Can a Reading short let pay business rates?
Yes, if it meets the government's tests for availability and letting.
Is a visitor levy coming to Reading?
Possibly. Keep an eye on future plans.
Which costs are higher in Reading?
Service charges in newer blocks, business-standard furnishing like a desk and fast Wi-Fi, and town-centre parking.
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
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.