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A residential building is defined as one which is either:
Designed as a dwelling or number of dwellings; or
Intended for use solely for a relevant residential purpose (which includes hospices, old people's homes and any building which is the sole or main residence of at least 90% of its residents but does not include hospitals, prisons or similar institutions).
A dwelling is generally held to mean a place where someone dwells and which they treat as their home. This definition follows from a House of Lords judgment in a Housing Act case, Uratemp Ventures Ltd v Collins  UKHL 43.
If your Deeds therefore restrict the use of the property for "residential purposes", the purpose of the restriction is to ensure that the property is occupied only as a main residence, someone's home. It is intended to prevent transient occupiers and as such,you would not be able to use it as a B&B.
You could, however, use it for lodgers/care in the community.
I hope this assists and sets out the legal position.
If you are operating as a bed and breakfast, you do need to apply to the local Council to register and comply with all the individual Council's requirements. These would normally include the requirement to obtain planning permission.
They would also have to see if business rates are payable.
If they were providing any food to the residents then they are classed as a food business. This means you are required to comply with food hygiene legislation and and must register with your local authority.
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