The Chilterns has become one of the UK’s most attractive rural destinations for short-let stays. From walkers exploring the Chiltern Hills to Londoners seeking weekend escapes, demand is rising - and more homeowners are turning to platforms like Airbnb to supplement their income.

But a big question for hosts or soon-to-be hosts is:

“Will my council tax change if I use Airbnb in the Chilterns?”

The short answer is:
Your council tax may change - or may be replaced by business rates, depending on how frequently you let your property.

The rules are the same nationally, but their impact is particularly noticeable in areas like the Chilterns, where many properties are second homes or holiday cottages. Below is a clear, detailed explanation of how it works.

Understanding the Two Systems: Council Tax vs Business Rates

Every property in the Chilterns is charged either council tax OR business rates, not both.
When you start using your property for short-let stays, the classification can change.

1. Council Tax (default position)

You will continue paying council tax if:

• The property is your main home

• You let it occasionally or irregularly

• It is available for short-lets less than 140 days per year

Most casual Airbnb hosts remain under council tax.

2. Business Rates (for Furnished Holiday Lets)

Your property may move to business rates if:

• It is available to let for 140 days per year, and

• It is actually let for at least 70 days per year

This is the official UK threshold for being classed as a Furnished Holiday Let (FHL).

If you meet these criteria, the property is removed from council tax and placed on the business rates register.

How This Applies in the Chilterns Specifically

The Chilterns includes a mix of local councils (Buckinghamshire Council, including the former Chiltern and Wycombe districts). Their treatment of short-let properties follows national rules but with local considerations:

• No council tax discounts for second homes

Buckinghamshire Council does not generally offer second-home discounts.
However, from April 2025, councils can charge double council tax on second homes not used as main residences.

Many Chilterns hosts are doing short-lets specifically to avoid the upcoming premium.

• Moving to business rates may be financially beneficial

If your property qualifies as an FHL, you may be eligible for:

• Small Business Rate Relief (SBRR)

• Up to 100% reduction, depending on the rateable value

This means some Chilterns Airbnb owners pay zero business rates.

• Business rates apply even if you ONLY use Airbnb

It doesn’t matter which platform you use - what matters is the number of nights available and booked.

When Your Council Tax Will Not Change

You will remain on council tax if:

• You rent a room in your main home

• You only list occasionally throughout the year

• Your Airbnb availability is under 140 days

• Your property is not a dedicated short-term rental

• Your bookings fall below the 70-day let threshold

In these cases, Airbnb activity does not affect your council tax banding.

When Your Council Tax May Increase

Your council tax may go up if:

1. Your property becomes a second home

From April 2025, councils can apply a 100% council tax premium on second homes.
This includes:

• Holiday cottages

• Unoccupied homes used only for Airbnb guests

• Weekend homes not used as a main residence

Many Chilterns villages contain a high number of second homes, making this rule particularly important.

2. You make structural changes to increase your rental income

If you:

• Add an annexe

• Convert a garage or outbuilding

• Add a separate self-contained unit

Your council tax band may be reassessed.

When Your Property Will Switch to Business Rates

Your Airbnb will be assessed for business rates if:

• It’s available for short-let bookings 140+ days
  AND

• Guests actually stay there 70+ days

If this happens:

• You will no longer pay council tax.

• You may qualify for significant rate relief.

• The Valuation Office Agency (VOA) will assign a “rateable value”.

In the Chilterns, smaller holiday cottages often fall into the rateable value range that qualifies for 100% SBRR, making short-letting financially very attractive.

How Does HMRC Know Which Taxes You Should Pay?

Since 2024, platforms like Airbnb must automatically report your income to HMRC.

If HMRC sees:

• Regular bookings

• High occupancy

• Continuous availability

…it may trigger a review of whether your property should be under business rates instead of council tax. Councils and the VOA increasingly share information.

FAQ: Council Tax and Airbnb in the Chilterns

1. Will letting my property on Airbnb increase my council tax band?

Not usually. Banding only changes if you make structural alterations that add value.

2. Can I choose whether I pay council tax or business rates?

No. It depends entirely on usage and availability.

3. If I live in the property but let it occasionally, do I stay on council tax?

Yes. Renting a room or occasional short-lets do not change your tax status.

4. Can I avoid the second-home council tax premium by listing on Airbnb?

Only if your property genuinely meets the FHL criteria and moves onto business rates.

5. Will Airbnb tell the council?

Airbnb reports to HMRC, not the council.
However, councils can request information from HMRC or the VOA.

6. When does the 2025 second-home premium start?

April 2025, but some councils (like Buckinghamshire) may delay implementation for administrative reasons.

7. If I switch to business rates, can I switch back?

Yes - if you no longer meet the FHL thresholds.

Conclusion: How Pass the Keys Chilterns Can Help

Managing tax rules, council classifications, HMRC reporting, and the operational commitments of an Airbnb can overwhelm any host - especially in areas like the Chilterns where many properties are rural or second homes.

Pass the Keys Chilterns provides full-service short-let management, helping hosts:

• Track occupancy to ensure correct tax treatment

• Understand whether council tax or business rates apply

• Prepare income summaries for HMRC

• Navigate 70- and 140-day thresholds

• Maximise revenue while staying compliant

• Handle guest communication, cleaning, and maintenance

• Protect your property and avoid regulatory mistakes

Whether you host a cottage in the Misbourne Valley or a converted barn outside Great Missenden, Pass the Keys ensures your Airbnb stays profitable, compliant, and stress-free.