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.
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.
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.
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.
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:
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.
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.
It doesn’t matter which platform you use - what matters is the number of nights available and booked.
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.
Your council tax may go up if:
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.
If you:
Add an annexe
Convert a garage or outbuilding
Add a separate self-contained unit
Your council tax band may be reassessed.
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.
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.
Not usually. Banding only changes if you make structural alterations that add value.
No. It depends entirely on usage and availability.
Yes. Renting a room or occasional short-lets do not change your tax status.
Only if your property genuinely meets the FHL criteria and moves onto business rates.
Airbnb reports to HMRC, not the council.
However, councils can request information from HMRC or the VOA.
April 2025, but some councils (like Buckinghamshire) may delay implementation for administrative reasons.
Yes - if you no longer meet the FHL thresholds.
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.