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

Social Worker

Durham County Council
£35,412 - £39,152 / £40,777- £45,091 p.a. i.e. pre-progression Grade 9/ post -progression Grade 11
We are seeking a dedicated and enthusiastic social worker to play a key role within the Social Care Direct team, which serves as the vital ‘front of h Durham
Recuriter: Durham County Council

Deputy Manager, Children’s Homes Service

Durham County Council
Grade 11 £40,777 - £45,091
Deputy Manager – Pioneering New Project Supporting Young People’s Transition to Independence   Salary
Recuriter: Durham County Council

Year 5/6 Teacher plus TLR2 for Quality of Education

Durham County Council
M3 to UPS3 £35,674 to £51,048
Year 5/6 Teacher  M3 to UPS3 £35,674 to £51,048 + TLR2 (£3,527) for Quality of Education Full Time, Whole Time Permanent Required from 1 January 2026 Ferryhill
Recuriter: Durham County Council

Business Administration Apprentice

Durham County Council
£7.55 per hour
Business Administration Apprentice National Apprentice Training Wage £7.55 per hour Temporary – required from 6 January 2026 until 31 August 2027 37 h Cassop
Recuriter: Durham County Council

Administrative Assistant

Durham County Council
£25,185 - £25,989 pro-rata
Admin Assistant Grade 3 £25,185 - £25,989 pro-rata Part Time - 18.75 hours per week / Term time only  Temporary – required from 6 January 2026 until 3 Cassop
Recuriter: Durham County Council
Linkedin Banner