How Are Guest Houses and B&Bs Rated?

---

Guest houses and B&Bs are assessed for Business Rates in a similar but slightly distinct way compared to pubs, based primarily on their "Fair Maintainable Trade" (FMT) — i.e. the hypothetical income a reasonably efficient operator could generate from the property, assuming average occupation and tariffs.

Here's a breakdown of how this process works for Guest Houses and Bed & Breakfasts:

Fair Maintainable Trade (FMT)

• Based on expected room occupancy and average room rate per night.
• It includes both the accommodation income and sometimes food/drink income (especially if breakfast/dinner is regularly provided).
• Turnover from sources like parking, events, or self-catering may also be considered.

Key Inputs for VOA Assessment

• Number of lettable rooms
• Average occupancy rate (typically 50–70% for small B&Bs)
• Average room rate (per night, excluding VAT)
• Income from meals, if applicable
• Trading season length (some B&Bs don’t operate year-round)