From July 24, 2026, England maintains the ordinary 140/70/140 test but adds a specific route for certain complexes of five or more units.
Until now, many holiday let owners looked at three numbers: 140 days available, 70 days actually rented, and another 140 days of future intention.
This test still exists. What changes from July 24, 2026, is that certain properties with five or more self-catering units can enter through a specific route if they meet the legal conditions.
The official guide from the Valuation Office Agency reflects the change introduced by the Non-Domestic Rating (Definition of Domestic Property) (England) Order 2026, effective from July 24, 2026.
The ordinary test remains 140/70/140
In general terms, a self-catering property that intends to be valued as non-domestic must demonstrate:
- having been available for rent for at least 140 days in the previous period;
- having been actually rented for at least 70 days;
- having the intention to be available for at least 140 days in the following period.
When there are multiple independent units, in England the 70-day requirement is analyzed per unit; the nights are not averaged between them to pass the ordinary test.
What the new route for 5 or more units offers
The new exception may be relevant when a building or an autonomous part is part of the same hereditament that comprises or includes five or more self-catering units, provided that the remaining conditions are met and no unit is the main residence of the relevant person.
In this route, the intention to offer the units for short stays for at least 140 days in the year starting from the consideration date becomes particularly important.
| Situation | What to look for |
|---|---|
| Ordinary test | 140 days available + 70 days rented + 140 days of future intention |
| Multiple units under ordinary test | The 70 days are met per unit; they are not averaged |
| Special route 5+ | Relevant hereditament with 5 or more units, usage conditions, and 140 days of future intention |
CALCULATION / GATAVIA SCENARIO
Complex of 5 cottages. Each cottage was rented for 40 days in the historical period, but the owner plans to offer each for 180 days over the next 12 months.
By the ordinary test, each unit fails the historical minimum of 70 days. However, the special route for complexes of five or more units could be relevant if all structural and usage conditions of the new regime are met.
With only 4 cottages, that specific route of five or more units would not be available.
What the change does not mean
Having five units does not automatically make accommodation subject to Business Rates. It is necessary to check how the hereditament is constituted, the use of the units, the residence of the relevant persons, and the other requirements.
If you manage a complex of five or more holiday lets in England, do not rely solely on the 70 historical nights. Check if you can fit into the new 5+ unit route. Before changing the tax classification, confirm the hereditament and conditions with the VOA or with specialized advice.
Official sources
GOV.UK · Valuation Office Agency: Rating Manual · domestic and non-domestic borderline.
Also consult: Holiday accommodation (self-catering).