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Council tax or business rates – Which apply?

Question:

We have a property that has been let to a building company for the storage of materials while working on adjacent properties and for facilities for workers. As a result, it is not a second home for any of the workers. There are no issues with paying council tax on the property but the council is asking for the names of the workers in an attempt to charge a premium. Is the let to a business for this purpose a legitimate tenancy? 

Arthur Weller replies: 

Consider explaining to the council that this is a business tenancy and any accommodation is job-related, so that it is not a residential tenancy; business rates should apply, not council tax. So demanding the names of the workers to apply a second home premium seems legally unjustified. If necessary, appeal to the Valuation Tribunal. 

We have a property that has been let to a building company for the storage of materials while working on adjacent properties and for facilities for workers. As a result, it is not a second home for any of the workers. There are no issues with

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This question was first printed in Tax Insider in November 2025.