Totally confused lol

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    Totally confused lol

    I have a large first floor flat which was converted to 4 x self-contained studios (bed/lounge, kitchenette and en-suite) more than 4 years ago (actually 10+ years ago). They share a washer and dryer in a communal corridor.

    The "flats" were part of a hotel but were split when the hotel was sold earlier this year.

    As the property is located 30 metres from the seafront, I was planning to let them as holiday lets (including lets of up to 12 weeks for contractors working temp in the area).

    However, the council have informed me that the property has no planning class and that I have to submit a planning application.

    I believed they retained the "holiday use" class but the Council say they are not.

    Now, I cant decide whether to go ahead with the furnished holiday lets and issue a Licence to Occupy for each guest OR apply for planning as one large flat and let them out as 4 x ASTs

    The thing which is confusing me is that if I go for Holiday lets then I get rates relief and dont pay business rates BUT if I go for the 4 studio flats are each counted for council tax or is the property counted as one for council tax?

    #2
    We had 3 FHL flats in one building and paid business rates as we were over the 'size' of business for no rates but did get a reduction. The business rates were derived from the number of beds in each unit.

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      #3
      Also there might be HMO requirements if it's one flat with 4 tenants.

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        #4
        Town and Country Planning Act 1990
        171B Time limits.


        (1)Where there has been a breach of planning control consisting in the carrying out without planning permission of building, engineering, mining or other operations in, on, over or under land, no enforcement action may be taken after the end of the period of four years beginning with the date on which the operations were substantially completed.

        (2)Where there has been a breach of planning control consisting in the change of use of any building to use as a single dwellinghouse, no enforcement action may be taken after the end of the period of four years beginning with the date of the breach.
        It would seem that each of the studio flat is a single dwellinghouse, which would require each to be valued for council tax purposes.

        As long as there is clear evidence that such use has been for more than 4 years then this is the current legal planning status of each of them, despite what the local planning authority may have told you.
        However, the council have informed me that the property has no planning class and that I have to submit a planning application.
        When a house is divided into two flats there will always be two separate council tax bills created following a visit from the Valuation office, so I cannot see why the same thing will not happen in the situation you have posted about. A small studio flat will be Tax Band A. which is the current minimum Council Tax Band available, which in my own area means the annual bill is £1,300, the equivalent to £25 per week.

        Of course a tenant will be expected to pay those bills in a standard tenancy agreement.

        Not sure what happens when each studio flat is let as a holiday rental property, since I have no personal experience of that.
        I assume the rent charged will have to reflect the fact that it will be the owner paying the council tax bill, but of course holiday rents are so ridiculously high that may be one of the reasons the owners charge so much per week.

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