Laura Sharman 14 January 2022

Gove closes tax loophole on second homes

Gove closes tax loophole on second homes image
Image: ian woolcock/Shutterstock.com

A loophole that allows second home owners to avoid paying council tax by falsely claiming their properties are holidays lets will be closed under new measures.

The Government has announced changes to the tax system to ensure people are paying their fair share towards local services.

At the moment, home owners in England can avoid paying council tax and access small business rates relief by declaring an intention to let the property out to holidaymakers.

Under the new measures, second homeowners will have to prove holiday lets are being rented out for a minimum of 70 days a year and provide evidence such as the website or brochure used to advertise the property, letting details and receipts.

Secretary of state for levelling up, Michael Gove, said: 'The Government backs small businesses, including responsible short-term letting, which attracts tourists and brings significant investment to local communities. However, we will not stand by and allow people in privileged positions to abuse the system by unfairly claiming tax relief and leaving local people counting the cost.

'The action we are taking will create a fairer system, ensuring that second homeowners are contributing their share to the local services they benefit from.'

The move has been welcomed by the Local Government Association (LGA) who have previously warned the current criteria is open to abuse.

Cllr Shaun Davies, chair of the LGA’s Resources Board, said: 'We are pleased government has listened to councils and is taking action to prevent owners of properties which are not genuine businesses exploiting the rules.'

SIGN UP
For your free daily news bulletin
Highways jobs

Independent Travel Trainer

Oxfordshire County Council
£41,771 - £45,091
About Us At Oxfordshire County Council (OCC), our Supported Travel Service plays a vital role in keeping communities across the county connected, independent and involved. Every day, a dedicated team of around 200 staff members supports the journeys and t Oxford
Recuriter: Oxfordshire County Council

Contract & Compliance Manager

Oxfordshire County Council
£63,576 - £67,003
About Us At Oxfordshire County Council (OCC), our Supported Travel Service plays a vital role in keeping communities across the county connected, independent and involved. Every day, a dedicated team of around 200 staff members supports the journeys and t Oxford
Recuriter: Oxfordshire County Council

Procurement Manager

West Northamptonshire Council
£49587 - £52860
At West Northamptonshire Council, we are currently looking for two experienced procurement professionals to join and support both our People and Resources and Place and Capital Business Partner teams. As procurement managers you will play a central role Northampton
Recuriter: West Northamptonshire Council

Technical Assistant - Place Services

Essex County Council
Up to £25081.00 per annum + + 26 Days Leave & Local Gov Pension
Technical Assistant - Place ServicesPermanent, Full Time£25,081 per annumLocation
Recuriter: Essex County Council

Senior Project Manager (Major Projects)

Calderdale Metropolitan Borough Council
£49,282 - £52,413
Are you a Senior Project Manager with significant experience in delivering highway and infrastructure projects? Calderdale, West Yorkshire
Recuriter: Calderdale Metropolitan Borough Council
Linkedin Banner