Holiday let rules on the Isle of Wight
The Isle of Wight Council expects its second homes premium to raise more than £5 million a year, and its new planning strategy proposes controls on where homes can become holiday lets. Here is what applies on the Island now.
Checked against official sources on 28 Sept 2026. This is general information, not legal advice.
What's specific to the Isle of Wight
Second homes premium: double council tax
The Isle of Wight Council charges a 100% premium on furnished second homes from 1 April 2025, which it expects to raise more than £5 million a year. Exceptions include homes with planning conditions that prevent year-round occupation and properties genuinely being marketed for sale or let. A holiday let that meets the 140/70 test is on business rates, not council tax.
The Island Planning Strategy and short-term lets
The council's emerging Island Planning Strategy was found sound by the Planning Inspectors in September 2026, subject to modifications. Its evidence paper proposes supporting homes changing to short-term holiday lets in core tourist accommodation areas on the policies map, and not supporting them elsewhere unless there is clearly no harm to neighbours. Until the strategy is adopted there is no such policy in force, and existing lets are not affected.
Fire safety: Hampshire & Isle of Wight Fire and Rescue Service
HIWFRS lists holiday accommodation with B&Bs, guest houses and hotels as sleeping accommodation that needs a fire risk assessment under the Fire Safety Order. The national guide for small paying guest accommodation is the starting point for most Island cottages and flats.
Seasonal lets and the 140/70 test
Island lets are often busy in summer and quiet in winter. Business rates need the property available for 140 nights and actually let for 70 in the year, so keep booking calendars for every platform as evidence. HostSorted counts the nights for you across all your linked calendars.
What applies across England
The national short-term let register
A national register for short-term lets in England is on the way. It isn't in force yet; the government said in September 2026 it will be fully operational by March 2027. Hosts are expected to register each property and show a registration number on their listings. Fees and the exact details haven't been published.
Business rates or council tax: the 140/70 rule
Your holiday let is assessed for business rates instead of council tax only if it was available to let for at least 140 nights in the last 12 months, was actually let for at least 70 of them, and will be available for 140 nights in the next 12 months. The Valuation Office Agency decides, not the council.
Read the guideGOV.UK: business rates for self-catering properties
Furnished holiday lettings tax rules have gone
The special furnished holiday lettings (FHL) tax regime ended in April 2025. Holiday let income is now taxed like other property income, so mortgage interest relief is restricted to the basic rate and FHL capital gains reliefs no longer apply. Speak to your accountant about what this means for you.
Fire safety applies to every holiday let
Paying guest accommodation falls under the Regulatory Reform (Fire Safety) Order 2005. Every host needs a written fire risk assessment, suitable alarms and clear escape routes, and must give guests fire safety information. Fire services can and do prosecute.
Read the guideGOV.UK: making small paying guest accommodation safe from fire
Keep your Isle of Wight holiday let compliant, automatically
HostSorted builds the exact checklist for your property, reads your certificates, counts your booked nights and emails you before anything is due. Free for one property.
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