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

Housing Revenue Account (HRA) Strategic Financial Advisor

London Borough of Richmond upon Thames and London Borough of Wandsworth
£48,873 - £59,220 per annum
Job Title
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Team Manager

Cheshire East Council
£48,072 - £54,994
At Cheshire East Council we are resident, and partner focused with a vision to enable prosperity and wellbeing for all. Crewe, Cheshire
Recuriter: Cheshire East Council

Youth Worker

Cheshire East Council
£31,537 - £34,434
This role of the Youth Worker is assisting the Senior Youth Worker with the day-to-day delivery of our targeted youth work programme Cheshire
Recuriter: Cheshire East Council

Youth Support Worker

Cheshire East Council
£25,583 - £25,989
This role supports the Senior Youth Worker and Youth Work to plan, deliver and evaluate targeted diverse youth work programmes Cheshire
Recuriter: Cheshire East Council

Best Start for Life Assistant

Cheshire East Council
£25,583 - £25,989
An exciting opportunity has become available to join Cheshire East Council as a Best Start for Life Assistant. Cheshire
Recuriter: Cheshire East Council
Linkedin Banner