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

Transport and Major Work Manager

Slough Borough Council
£54,556 to £60,085 per year Inclusive of Local Weighting Allowance of £1096
Drive the future of transport and infrastructure in Slough Slough, Berkshire
Recuriter: Slough Borough Council

Assistant Area Manager - Libraries

Kirklees Metropolitan Council
£41,771 - £44,075
Are you passionate about Libraries and committed to being involved in their future? Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Service Manager Residential Children's Homes

Kirklees Metropolitan Council
£57,457- £58,462
We are seeking a highly motivated, creative, and experienced Service Manager Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Senior Occupational Therapist - Independent Workforce Team

Essex County Council
£48205 - £57988 per annum + Flexible Working, Hybrid Working
The TeamThe Independent Workforce Team (IWT) is a unique team that is largely made up of Independent Practitioners including Social Workers, Occupati England, Essex, Chelmsford
Recuriter: Essex County Council

Housing Solutions Apprentice

Kirklees Metropolitan Council
£24,521.28
As an Apprentice within the Housing Solutions Service, alongside your apprenticeship studies Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council
Linkedin Banner